Bitcoin (BTC) dropped toward an intraday low near $80,000, trading around $80,744 as a massive cryptocurrency selloff triggered $1.16 billion in liquidations over 24 hours. Data from CoinGlass shows bullish long positions bore the brunt of the market retreat, accounting for $1 billion (with long liquidations reaching $1.05 billion overall) compared to just $108 million in short positions as liquidations mounted across derivative markets.
The unwinding accelerated rapidly in recent hours, with CoinGlass recording nearly $700 million in liquidations during a single four-hour window—including $650 million in long trades. In total, 166,769 traders saw their leveraged positions closed as prices breached collateral thresholds across exchanges.
Massive Leverage Flush Hits Ethereum and Altcoins Hardest
Although Bitcoin's decline dominated headlines, Ethereum (ETH) recorded the heaviest liquidation volume among major assets. Approximately $324 million in ETH positions were liquidated over 24 hours, exceeding Bitcoin's $240 million in forced closures. Ethereum dropped below $2,500, falling 4% over 24 hours and extending its weekly loss to 9.3%. The single largest liquidation event occurred on decentralized exchange Hyperliquid, where a single ETH-USD position worth $20 million was wiped out.
Altcoins experienced widespread pressure following warnings of overextended leverage:
- Solana (SOL) tumbled 7.2% in 24 hours to $108.61.
- XRP dropped 5.7% to $1.35.
- BNB lost 4.9%.
- Zcash (ZEC) suffered a severe 14% drop.
Analytics firm Glassnode noted in its Oct. 7 report that open interest relative to market capitalization across large-cap altcoins had climbed to its highest ratio since before the October 2025 crypto crash, creating extreme fragility across digital assets.
Short-Term Holders Capitulate as Exchange Inflows Surge
On-chain metric provider CryptoQuant reported that recent buyers are panicking as prices retreat. Short-term Bitcoin holders sent over 50,000 BTC to exchanges at the 24-hour peak (with a separate daily count showing 45,600 BTC deposited). Crucially, 29,500 BTC (or 24,900 BTC, representing 59% of short-term inflows) were transferred at a loss—marking the largest realized loss volume for short-term holders in nearly four months.
This behavior marks a sharp reversal from earlier in the month when prices pushed higher. Glassnode recorded that short-term holders represented 86% of exchange inflows on Oct. 4 as Bitcoin closed above $85,000. The sudden pivot from profit taking to loss realization highlights waning confidence among buyers who entered during the recent rally.
Order Books Test Key Support at $81,000
Market participants are now testing whether buy orders near $81,000 can absorb incoming spot and forced liquidation volume as on-chain support around $81,000 comes under strain. Glassnode analysis identified a dense concentration of resting spot buy bids between $81,000 and $81,250 on Binance that had accumulated since Oct. 3.
This bid cluster developed after Bitcoin failed to overcome overhead supply between $86,500 and $86,750 and lost its secondary support zone at $85,000, reversing the momentum seen during the earlier profit-taking above $85,000. However, Glassnode derivatives data warns that while liquidity clusters rest between $81,700 and $83,300, another major zone of derivative liquidation triggers sits much lower near $75,000.
Key Takeaways
- $1.16 Billion Liquidated: Total 24-hour derivatives liquidations reached $1.16 billion, with 166,769 traders wiped out.
- Ethereum Leads Losses: ETH saw $324 million in liquidations versus $240 million for BTC, plunging below $2,500.
- Panicked Deposits: Short-term holders transferred over 29,500 BTC to exchanges at a loss, the highest level in nearly four months.
- Critical Bid Zone: Spot order books on Binance show heavy resting bids between $81,000 and $81,250.
Why It Matters
This leverage wipeout highlights how fragile the recent push toward $87,000 was, as excessive open interest in altcoins and thin order book depth left the market vulnerable to cascading sell orders. The shift by short-term holders from taking profits at $85,000 to panic-depositing coins at a loss at $80,000 indicates that retail sentiment has flipped rapidly to risk-averse defensive positioning. If the buy wall around $81,000 fails to hold under continuous exchange deposits, market structure points to a lack of meaningful liquidation support until the $75,000 region.
