Bitcoin’s “Uptober” Turns Painful as $19B in Liquidations Shake the Market
October began with optimism for Bitcoin, but the month quickly unraveled into one of the most volatile and punishing periods for traders in recent memory.
After hitting an all-time high of $126,000 on Oct. 6, Bitcoin (BTC, $115,981.08) tumbled nearly 17% within days, triggering a chain reaction of liquidations across derivatives markets. More than $19 billion in positions were wiped out on Oct. 9 alone, as prices briefly plunged to $102,000 before recovering toward $115,300.
The sudden reversal came as traders, emboldened by months of steady gains, were caught off guard by the violent swings. The crypto market shed roughly $500 billion in total value during the early October sell-off, with exchanges struggling to process the surge in liquidations.
Exchanges Under Scrutiny
Reports of automated position closures even among traders with sufficient margin led Binance to announce a $300 million compensation program. Between Oct. 7 and Oct. 10, Bitcoin’s open interest fell by more than 30%, underscoring the scale of deleveraging — a level not seen since the FTX collapse in late 2022.
Despite the chaos, the market’s structural response was notably more stable this time. Analysts attribute that resilience to the growing share of trading on regulated venues such as CME and spot Bitcoin ETFs, which have absorbed volatility more efficiently than in prior cycles.
No Winners, Only Survivors
For retail traders, October was brutal. Both long and short positions were liquidated, leaving few unscathed. Data shows that Bitcoin’s price recovery and open interest gains that followed stem more from asset appreciation than new speculative inflows — evidence of lingering caution among market participants.
This sell-off felt different from past corrections in 2018, 2020, or 2022. Back then, bearish traders could profit; this time, almost everyone took losses.
Bitcoin’s monthly chart tells the story: long wicks on both sides and a narrow body. Holders from Oct. 1 remain slightly in profit, but anyone who tried to trade directionally likely ended October with heavy losses — a sobering reminder of how unforgiving crypto volatility can be.
