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Bitcoin Liquidations Top $1 Billion as Leverage Mounts Before Anniversary

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BTCUSD$82,766.05 0.25%

Bitcoin (BITSTAMP:BTCUSD) fell toward $80,000, forcing exchanges to liquidate more than $1 billion in trading positions within 24 hours. Contrary to expectations that investors would cut risk ahead of the October 10 anniversary of last year's record crash, leverage actually expanded. Bullish positions accounted for roughly $930 million of the total forced closures as prices reached a low of $80,393.

The selloff underscores how elevated borrowing leaves crypto markets vulnerable to swift pullbacks. The estimated leverage ratio comparing open derivative bets to exchange holdings climbed from roughly 0.234 on October 3 to 0.256 on October 8, remaining elevated near 0.250 after the drop. However, total open positions shrank from about $154 billion to $142 billion, while funding rates remained far lower than 2025 levels, indicating less market crowding.

Bitcoin traded near $82,750 following the drop, remaining roughly 35% below its peak of $126,000 set in October 2025. Market sentiment showed resilience, with fear and greed metrics remaining in greed territory. Investors are now watching price levels around $75,000, where another significant concentration of leveraged bets is positioned.

Key points

  • Bitcoin fell to $80,393, driving over $1 billion in forced liquidations within 24 hours.
  • Bullish bets accounted for approximately $930 million of the total liquidated positions.
  • Market leverage metrics rose from 0.234 on October 3 to 0.256 on October 8 despite risk warnings.
  • Total open positions decreased from $154 billion to $142 billion, with funding rates well below 2025 peaks.
  • The next major concentration of leveraged positions sits near the $75,000 price level.

Written by our AI from expert market sources across the web. It can contain mistakes: check the facts before acting on them. Write-ups powered by the free AI API at FreeTheAI.org

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Questions and answers

What caused the recent Bitcoin liquidations?

Traders increased leverage ahead of October 10, leaving positions exposed when Bitcoin dropped toward $80,000. Over $1 billion in bets were forcibly closed, mostly from traders anticipating price increases.

How much money was liquidated during the Bitcoin selloff?

More than $1 billion in trading positions was liquidated within 24 hours, with about $930 million coming from long positions betting on price gains.

Where is the next key leverage level for Bitcoin?

The next major cluster of leveraged trading positions is positioned near the $75,000 price level.