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Average daily wipeouts have risen from about $28 million long and $15 million short last cycle to about $68 million long and $45 million short in the current cycle, according to new research from Glassnode and Fasanara. report. That shift has made the individual sell-off much more violent.
Early Black Friday shock
Reports have shown that October 10 was the clearest sign of the change. On that day, more than $640 million per hour in long positions were liquidated as Bitcoin fell from $121,000 to $102,000.
Open interest fell by about 22% in less than 12 hours, falling from almost $50 billion to $39 billion. Traders felt the move quickly. Positions were closed on a scale that Glassnode called one of the sharpest deleveraging events in Bitcoin history.
Futures activity reaches records
The futures markets have grown. Open interest rose to a record $68 billion and daily futures sales reached $69 billion in mid-October.
Perpetual contracts now account for more than 90% of that activity, concentrating risk in instruments that are constantly reset.
The average daily wipeouts of futures as high as $68 million long and $45 million short demonstrate the costs when big swings occur.
Spot Trading doubles down
Based on reports, spot trading has also become more active. Bitcoins stain volume has risen to a daily range of $8 billion to $22 billion, roughly double what was seen in the previous cycle.
During the October 10 crash, hourly spot volume soared to $7.3 billion, with many traders stepping in to buy the dip rather than rushing for the exit. That flow has helped shift where price discovery happens.
Capital flows and market share
Monthly inflows into Bitcoin ranged from $40 billion to $190 billion, pushing its realized market capitalization to a record $1.1 trillion.
Since the November 2022 low, about $730 billion has flowed into the network – more than all previous cycles combined.
As a result, Bitcoin’s share of the total crypto market capitalization has risen from 38% at the end of 2022 to 58% today, based on the report’s figures.
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Bitcoin as a settlement trail
Meanwhile, here’s another eye-popping statistic: Over the past 90 days, the Bitcoin network has processed nearly $7 trillion in transfers. That throughput exceeded what major card networks handled in the same window.
This is cited as the reason some participants see Bitcoin not only as a store of value, but also as an increasingly important settlement track.
Bitcoin price action
At the time of writing, Bitcoin was trading at $93,165up 6.5% and almost 7% in the daily and weekly time frames.
Featured image from Unsplash, chart from TradingView
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