Crypto Market Sees $600 Million Liquidations Amid Bitcoin Pullback
On Tuesday, the crypto market experienced over $600 million in liquidations within 24 hours. This followed Bitcoin’s retreat from its recent all-time high.
Data from Coinglass shows Bitcoin and Ethereum made up nearly 60% of total liquidations. Major exchanges like Binance, OKX, and Bybit saw significant long-position liquidations. This suggests traders had taken on too much leverage after last week’s price surge.
Bitcoin Pulls Back After Reaching $125,000
Bitcoin briefly surpassed $125,000 last week, setting a new all-time high. It then dropped to around $121,000 due to profit-taking and macroeconomic uncertainty. Ethereum remained stable near $4,480, supported by institutional buying despite broader market weakness.
Technically, Bitcoin’s price rejected the $125,000 level, which aligns with the upper boundary of a multi-month ascending channel. The daily chart shows consolidation around $121,000 after a 7% pullback.
Support levels are between $120,500 and $116,000, formed by previous breakout points and the channel’s midline. Falling below this zone could push Bitcoin down to $112,000–$110,000, where buyers have historically stepped in.
Resistance remains at $123,700–$125,000. A clear breakout above this range could target $129,000 and $134,200. Trading volume has decreased since last week, indicating profit-taking and reduced leverage rather than panic selling. The overall trend remains bullish as long as Bitcoin stays above $110,000.
Market Cools as Traders Reduce Risk
Tuesday’s trading reflected a broader market cooldown. Bitcoin dominance fell slightly to 53.4%, while Ethereum’s market share held steady near 18.7%. Altcoins like Solana, XRP, and Avalanche dropped 3–5%, matching lower exchange volumes.
Funding rates on perpetual futures normalized after last week’s spike, showing traders are de-risking following recent volatility.
October began with renewed investor interest. Bitcoin’s record surge above $125,000, combined with rising stablecoin supply and institutional accumulation of BTC and ETH, showed ongoing demand for crypto exposure. However, sentiment has shifted from euphoria to cautious optimism.
The stablecoin market grew by $5.48 billion last week. On Ethereum, USDT and USDC supplies increased by $2.24 billion. Meanwhile, stablecoin supply on Plasma dropped by $716 million, indicating liquidity moved back to Ethereum-based protocols favored by institutional DeFi products and yield strategies.
Institutions Maintain Positions Amid Market Rotation
Data shows capital is consolidating within established ecosystems. Ethereum remains central for stablecoin issuance and major decentralized exchanges. Bitcoin continues to serve as an institutional reserve asset.
Although trading volumes have cooled, corporate holders like Bitmine and Metaplanet keep accumulating. This suggests strong institutional conviction despite price swings.
Investors are booking profits after Bitcoin’s peak, causing short-term selling pressure but no major trend reversal. Stablecoin inflows and the lack of panic indicate the market is rotating rather than retreating.
As “Uptober” progresses, the mood has shifted to cautious confidence. The current correction may clear excess leverage and prepare the market for a sustainable uptrend if institutional demand continues.
