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BTC $96,420 +2.34% ETH $3,280 +1.82% SOL $185.40 -0.92% BNB $642.50 +0.45% XRP $2.18 +3.12% DOGE $0.082 -1.50% ADA $1.05 +0.80% AVAX $42.10 +1.15%
12/03/2025

Daily Crypto Liquidations Nearly Triple as Leverage Runs Hot: Glassnode

Futures liquidations in the crypto market are surging as leverage continues to build, with a record "cascade" in October revealing the extent to which the derivatives market is driving Bitcoin's price cycles. According to a new report from Glassnode and Fasanara, average daily liquidations climbed from roughly $28 million in long positions and $15 million in short positions in the previous cycle to $68 million long and $45 million short in the current one. This was most evident on October 10 — dubbed

Daily Crypto Liquidations Nearly Triple as Leverage Runs Hot: Glassnode

Futures liquidations in the crypto market are surging as leverage continues to build, with a record cascade in October revealing the extent to which the derivatives market is driving Bitcoin's price cycles.

According to a new report from Glassnode and Fasanara, average daily liquidations climbed from roughly $28 million in long positions and $15 million in short positions in the previous cycle to $68 million long and $45 million short in the current one.

This was most evident on October 10 — dubbed "Early Black Friday." During the sell-off, more than $640 million per hour in long positions were wiped out as Bitcoin dropped from $121,000 to $102,000. Open interest plunged 22% in under 12 hours — one of the sharpest deleveraging events in Bitcoin's history.

Futures market activity expanded significantly, with open interest hitting a record $67.9 billion. Futures trading volume also spiked, at one point reaching $68.9 billion per day in mid-October, with perpetual contracts accounting for over 90%.

Bitcoin Spot Trading Volume Doubles

Bitcoin's spot trading volume also doubled compared to the previous cycle, reaching $8–22 billion per day. During the sharp October 10 drop, spot volume surged to $7.3 billion per hour — more than triple recent peaks — as traders rushed to buy the dip.

The report notes that since the U.S. spot Bitcoin ETF launch in early 2024, price discovery has shifted to the spot market while leverage has accumulated primarily in futures. This has channeled capital into large-cap assets, pushing Bitcoin's market dominance from 38.7% at end of 2022 to 58.3% today.

Capital flows reflect the same trend: monthly Bitcoin inflows ranging from $40 billion to $190 billion have pushed realized cap to $1.1 trillion — absorbing over $732 billion since the 2022 cycle bottom, more than all previous cycles combined.

Bitcoin Rivals Visa in Settlement Volume

Over the past 90 days, the Bitcoin network settled $6.9 trillion in transactions — surpassing the combined volume of Visa and Mastercard.

Bitcoin supply is also leaving exchanges and flowing into institutional hands. Approximately 6.7 million BTC is now held by ETFs, corporations, and centralized and decentralized treasuries. ETFs alone have absorbed 1.5 million BTC since early 2024, while exchange balances have steadily declined.