Friday’s wipeout triggered the largest futures liquidation in Bitcoin’s history. Over $11B in open interest was erased as leverage was forcefully unwound. A historic deleveraging event that has reset speculative excess across the market.

Bitcoin has stabilized above the 135-day moving average, while the Young Supply MVRV has reset toward 1.0. Together, these signal a market cooling from speculative extremes while maintaining structure.

🔗https://glassno.de/3Ja7Fve

The recent sell-off occurred with over 90% of Bitcoin supply still in profit, with most losses coming from top buyers.

Unlike the FTX and Luna crashes, when under 65% of supply was in profit, this was not a broad capitulation but a structurally different, leverage-driven event.

This heatmap highlights the intensity of Open Interest decline across the top 100 assets last Friday, revealing just how widespread the liquidation pressure truly was.

📈 https://glassno.de/3KMz0nQ

#BTC Options markets show net premium concentration at $115k–$130k, suggesting traders remain positioned for upside.

Despite the futures flush, call demand dominates, implying investors see the drawdown as a leverage reset.
🔗https://glassno.de/3WEpF40

The Week On-Chain 41, 2025
Bitcoin’s rally to $126k reversed amid macro stress and a $19B futures wipeout. ETF inflows slowing and volatility spiking, the market enters a reset phase marked by a historic leverage flush.

Executive Summary
-Bitcoin’s rally to a new all-time high at $126.1k reversed amid macro tensions and a $19B futures deleveraging, one of the largest in history. The drop below the $117k–$114k cost-basis zone placed top buyers in loss and exposed renewed market fragility.
- On-chain data show continued Long-Term Holder distribution since July and weaker ETF inflows (-2.3k BTC this week), indicating fading institutional demand. Meanwhile, spot markets experienced a sharp but orderly sell-off, with Binance-driven selling partially offset by buying on Coinbase.
- Futures markets underwent a historic leverage flush, with the Estimated Leverage Ratio collapsing to multi-month lows and funding rates plunging to 2022 FTX levels, signalling peak fear and forced liquidations.
- In the options market, open interest and volume rebounded quickly, but volatility spiked to 76%, and short-dated skew flipped to +17% put-rich before stabilizing. The market remains in a reset phase, awaiting renewed demand to confirm recovery.



Read more in The Week On-Chain newsletter

Smaller #BTC holders are stepping up.
Strong accumulation is underway among small to mid-sized cohorts (1–1000 BTC), while large holders have slowed distribution, signaling renewed confidence in spite of the recent shakeout.

The October 10 liquidation wave prompted caution, yet liquidity, macro, and regulatory conditions remain broadly supportive.
Our latest joint report with
@CoinbaseInsto
examines current market trends through data-driven insight.

Read the full report → http://glassno.de/charting_crypto