Based on Cointribune, the crypto market is experiencing a record wave of liquidations driven by excessive leverage in derivatives. On October 10, 2025, over $640 million in long positions were liquidated in a single hour, causing Bitcoin to drop from $121,000 to $102,000. Glassnode and Fasanara report that daily liquidations have surged to $68 million for longs and $45 million for shorts, nearly tripling compared to previous cycles. Open interest on derivatives fell 22% in under 12 hours, from $49.5B to $38.8B, while total open interest hit a peak of $67.9B. Analysts warn that the market's structural imbalance, fueled by speculation and leverage, remains a key vulnerability despite growing institutional capital inflows.
Crypto Market Faces Record Liquidations Amid Excessive Leverage Use
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