Bitcoin survived another wave of sharp overnight volatility. In 24 hours, the price went from $84,200 to $81,382, losing about 2.8%. At the same time, liquidations totaling $771 million swept across the entire crypto market. By the morning of October 13, BTC had partially recovered the decline and returned above $83,000.
The main blow fell on longs
Of the total liquidations, about $685.6 million came from long positions. In just 12 hours, the market lost about $631.8 million in forcibly closed trades. Liquidation occurs when the collateral is no longer enough to maintain a leveraged position and the exchange closes it automatically. This shows that before the drop, the market was once again heavily overloaded with bets on growth.
Altcoins fell harder than Bitcoin
Ethereum within the move declined by about 4.6%, to $2,425. Solana lost about 7.5%. XRP fell by about 6.4% and updated a three-week low. Zcash declined by 10.4%, showing one of the weakest moves among major assets.
The trigger came from Asia
The pressure did not start within the crypto market. The South Korean KOSPI index lost about 6.1% overnight and dropped below 6,000 points. Shares of Samsung Electronics and SK Hynix each declined by about 8%. The main concerns were related to valuations of AI companies and growing competition from China.
The global backdrop also remained weak
Nasdaq futures declined by about 0.6%. The DXY dollar index held around 102.50. US Treasury yields remained high. In such an environment, investors reduce risk, and cryptocurrencies usually come under pressure among the first.
Funds were also withdrawing money
Institutional flows remain an additional weak factor. Over the week, about $681.1 million exited spot Bitcoin ETFs. This is the worst weekly result since the end of June. Ethereum ETFs lost another about $542 million. That is, against the backdrop of falling prices, large funds are not yet showing a sustained desire to buy the dip.
Why BTC was able to recover
By morning, Bitcoin began to decouple from the still-weakening Asian stock market. The price returned above $83,000 and gained about 1.55% from the local low. At the same time, the market began to knock out some short positions as well. This suggests that after a major wave of liquidations, selling pressure temporarily eased.
What's next
The main near-term reference point is US inflation data. Before publication, large participants may more actively use options and other derivative instruments to hedge positions. For BTC, it is important to hold above the $82,000-83,000 zone and understand whether institutional demand will return after a weak week for ETFs. If the market again begins to rapidly build leverage, the risk of a new wave of liquidations remains.
Were you in a long this night?
The main blow fell specifically on long positions. Many traders met the rebound to $83,000 only after their trade had already been forcibly closed. In prop trading, a trader passes an evaluation, gains access to a larger company trading account, and works within established risk limits. It is better to understand the mechanics in advance, before the next major macroeconomic release.