The cryptocurrency market faced one of its most violent shakeouts in years, as Bitcoin (BTC) recorded over $1 billion in long liquidations on October 10, according to data shared by CryptoQuant.
It marks the largest single-day liquidation of leveraged long positions in BTC since April 2021.
Bitcoin’s price plummeted from $122,000 to $102,000 within hours, a 20% drop, before recovering slightly to close around $112,000. The sudden move triggered widespread margin calls and liquidations across major exchanges.
In total, the crypto market saw $16.85 billion in long positions and $2.51 billion in short positions liquidated, bringing the day’s total to approximately $20 billion. Analysts say most of the damage occurred in altcoins, where retail traders were heavily leveraged.
CryptoQuant analysts called the scale of liquidations “historic,” noting that such events often mark extreme sentiment resets. Despite the severity, some market observers view it as a potential washout that clears overextended positions, a necessary phase in the ongoing bull cycle.
The event has also sparked renewed discussion on market risk management, as volatility surged to its highest level since early 2022. Traders are now closely watching Bitcoin’s ability to hold the $110,000–$112,000 zone as a key psychological support area, while institutional players appear to be using the dip to accumulate at lower levels.
With long liquidations reaching heights unseen in four years, this correction may go down as one of the defining volatility spikes of the 2025 cycle, a reminder that leverage remains both the crypto market’s fuel and its most dangerous accelerant.
