TL;DR
- Bitcoin dropped to $107,700 after a 3.7% decline, while the CoinDesk 20 Index fell 3.5% amid a broad correction across the crypto market.
- Liquidations totaled $400 million, with $258 million in longs and $142 million in shorts; BTC futures open interest has fallen 30% since October 9.
- Glassnode noted that speculative leverage has been reduced and that a breakout above $111,000 could trigger a short squeeze.
Bitcoin fell to $107,700, a 3.7% drop in the last 24 hours, during a new wave of liquidations and a broader pullback in the crypto market. The CoinDesk 20 Index declined 3.5%, reflecting the correction phase the industry is undergoing after a brief rebound earlier this month.
According to CoinGlass, total liquidations reached $400 million in the past 24 hours, with $258 million in long positions and $142 million in shorts. BTC-related contracts accounted for $106 million, including $77 million in longs and $28 million in shorts. Open interest in BTC futures has fallen by roughly $20 billion since October 9, showing a 30% reduction in leveraged exposure.
Glassnode analysts said the process has wiped out much of the speculative leverage and brought funding rates back to near-zero levels. On-chain metrics confirm that outlook: the Bitcoin Combined Market Index (BCMI) has pulled back to 0.5, a neutral reading that has historically marked the end of corrective phases, while the MVRV ratio has dropped to 1.8 and the SOPR stands at 1.02—both signaling balance between profit-taking and accumulation.
A Break Above $111K Could Trigger a Short Squeeze
Technical indicators suggest that a sustained move above $111,000 could trigger a short squeeze, with nearly $14 billion in leveraged short positions potentially being liquidated if Bitcoin reclaims that range. Negative funding rates reinforce that possibility: bearish traders are now paying long holders to maintain positions, a setup often seen before upward reversals.
At the institutional level, U.S. spot Bitcoin ETFs recorded a net outflow of $40.4 million, led by a $100.7 million withdrawal from BlackRock’s IBIT fund. The Crypto Fear and Greed Index remains at 34, in “fear” territory, while gold also slipped 1.97% to $4,270 per ounce.
Mid-Cycle Correction
Analysts such as Michaël van de Poppe view the current adjustment as a structural mid-cycle correction rather than a macro top. If Bitcoin stabilizes above $111,000, the market could regain upward momentum once excess leverage is fully cleared out
