The sudden reversal triggered a wave of liquidations across major exchanges, wiping out more than $666 million in leveraged bets.
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The selloff ended Bitcoin’s upward momentum in what had been a strong start to “Uptober,” a month historically bullish for crypto markets.
Analysts point to excessive leverage, thin order books, and wider macroeconomic pressures—including concerns about a potential U.S. government shutdown and global liquidity shifts—as catalysts for the rapid correction.
Longs Take the Biggest Hit
According to Coinglass data, 175,935 traders were liquidated in the past 24 hours. Long positions dominated the fallout, losing more than $500 million—or over 70% of the total liquidations.
Crypto liquidations heatmap. Source: Coinglass
Binance saw the largest share of wiped-out trades, accounting for 45% of all liquidations, followed by Bybit with 25% and OKX with about 15%.
Bitcoin traders lost $155 million collectively, with $116 million erased from longs.
Ethereum positions saw even heavier damage, with $181 million liquidated—$145 million from longs and $36 million from shorts.
Uptober Momentum Faces Its First Test
Despite the pullback, the broader crypto market remains in a bullish posture.
Bitcoin had already broken its all-time high twice in the first week of October, fueled by heavy inflows into U.S. spot Bitcoin ETFs.
The Federal Reserve’s September rate cut, China’s $154.8 billion liquidity injection, and easing signals from the European Central Bank have created a supportive backdrop for risk assets.
Meanwhile, exchange balances have fallen to 2019 lows, signaling a supply crunch that could strengthen Bitcoin’s position once leverage resets.
A Healthy Reset?
For many traders, the correction is not necessarily a bearish sign but rather a typical shakeout of overextended positions.
With Bitcoin still trading above $121,000, well clear of summer levels, the pullback may set the stage for a stronger rally later this quarter.
If history is any guide, October has often been the month when crypto markets build lasting momentum. The question now is whether Bitcoin can stabilize above $120,000 and reignite its push toward new highs.
Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
