TL;DR
- The crypto market faced the largest liquidation in its history, exceeding $21 billion.
- Despite the blow, Bitcoin remained positive for October, showing unexpected strength.
- Analysts note that institutional and ETF demand is absorbing the selling pressure.
The cryptocurrency market has survived its most intense stress test to date. However, despite recording the largest liquidation in its history—a $21 billion deleveraging event that wiped out positions across the top 100 assets—Bitcoin (BTC) managed to stay in positive territory during the month of “Uptober.”
“It’s a small miracle,” as prominent market analysts have stated. For example, Scott Melker described it that way after the unexpected strength shown during the month.
The event, triggered by escalating trade tensions between the U.S. and China, caused a momentary drop in BTC’s price to $102,000, before recovering and stabilizing around $113,000.
Melker noted that although he expected a “deeply red” October, Bitcoin’s resilience to volatility changed his perspective. “I don’t think we are entering a bear market,” he affirmed, stressing that the event was “purely structural” and that investors are not panicking, but rather “reallocating” capital, as evidenced by the simultaneous rally in gold.
New Whales and Institutional Demand: The Keys to Strength
On-chain data reveals a significant shift in market dynamics. According to CryptoQuant, short-term holders (“new whales”) now control a record 44% of Bitcoin’s realized capitalization. Although in previous cycles this dominance often preceded major corrections, the current context is different.
The strong selling pressure is being effectively absorbed by unprecedented demand from ETF inflows, expanding stablecoin liquidity (with an increase of $14.9 billion in 60 days), and solid institutional participation.
Despite some fundamental indicators having weakened, accumulation by long-term whales remains strong. This new market structure demonstrates a maturity that explains Bitcoin’s remarkable resilience to volatility, suggesting that the underlying demand is more robust than in previous cycles.
