The Bitcoin Bear Market began in earnest on October 10, 2025, marking a pivotal moment in cryptocurrency history. This date is noted for the largest crypto derivatives liquidation event ever recorded, with about $19 billion in futures positions unwound as Bitcoin prices plummeted from their highs.
Understanding the October 10 Event
According to CryptoQuant analyst Darkfost, the devastation was both structural and directional. On this critical day, open interest in Bitcoin futures fell by approximately 70,000 BTC, effectively erasing months of leverage accumulation. This sudden de-leveraging is believed to have been the catalyst that thrust Bitcoin into a prolonged bear market.
Impact on Crypto Market Structure
The events of October 10 weren’t merely a price dip; they represented a significant contraction in the market’s ability to support leverage. This reduction in liquidity has hampered speculative activities across the crypto landscape, leading to reduced market confidence.
Darkfost emphasized, “Liquidity destruction in an uncertain crypto environment is not conducive to speculation—a vital component of the crypto market’s lifeblood.” Bitcoin Capital echoed these sentiments, stating that the post-October environment feels fundamentally altered.
Spot Trading and Market Liquidity
Following the October downturn, Bitcoin’s spot market participation has also waned. Darkfost notes that Bitcoin has entered its fifth consecutive month of correction, primarily driven by the October 10 event but exacerbated by broader market liquidity pressures.
Stablecoin outflows from exchanges, alongside a $10 billion reduction in stablecoin market capitalization, have added to the market’s woes, further restricting risk-taking opportunities. Spot trading volumes have notably halved, with Binance maintaining the largest share at $104 billion, down from nearly $200 billion in October.
Darkfost views these trends as indicative of a market characterized by diminished demand rather than temporary inactivity. For the Bitcoin market to recover sustainably, liquidity conditions must improve, and spot trading volumes need to rebound.
At the time of writing, Bitcoin is trading at $78,723, reflecting ongoing market uncertainty.
