Derivatives Funding Rates Collapse to 2022 Lows as Billions Liquidated — Is Bitcoin Set to Rebound?
Crypto derivatives funding charges plunged to their lowest ranges for the reason that 2022 bear market following the biggest liquidation occasion in historical past, with Glassnode information exhibiting altcoin funding charges collapsed to a median of -0.4% earlier than resetting above zero inside 24 hours.
The swift restoration in funding charges following the purge of over $19.33 billion in leveraged positions suggests the market might have accomplished one of the extreme deleveraging occasions in crypto historical past.
Altcoins Suffer -20% Median Drawdown as $10B BTC Open Interest Vanishes
Glassnode co-founder Rafael analyzed the market carnage, noting that whereas Bitcoin corrected comparatively mildly, altcoins skilled one of many sharpest day by day drawdowns in years, with median returns reaching -20%.
Bitcoin alone noticed over $10 billion in open curiosity erased throughout all main exchanges, which is the biggest open curiosity wipeout in historical past.
According to Rafael, Hyperliquid’s liquidation heatmap was “just about cleaned” with ranges each above and under spot triggered, possible pushed by the fast buildup of liquidation clusters in cross-margined accounts.
Notably, the collapse occurred as a Satoshi-era whale opened over $1.1 billion in short positions in opposition to BTC and ETH simply earlier than President Trump’s tariff announcement, finally producing an estimated $190 million to $200 million in realized earnings.
The similar dealer has since returned with a brand new $163 million quick place on Bitcoin with 10x leverage, already up $3.5 million in unrealized revenue, although dealing with liquidation if BTC climbs to $125,500.
Glassnode’s Bitcoin Long/Short Bias chart, which tracks the mixture web positions of the biggest merchants on Hyperliquid, confirmed a steep rise in web shorts beginning on October 6, properly earlier than Friday’s crash.
While ranges have since recovered, they continue to be profoundly damaging, prompting Rafael to urge merchants to “keep cautious.”
ETF Inflows Continue Despite Government Shutdown Delays
From October 6 to October 10, spot Bitcoin ETFs recorded web weekly inflows of $2.71 billion, with BlackRock’s IBIT main at $2.63 billion.
Spot Ethereum ETFs noticed web weekly inflows of $488 million, led by BlackRock’s ETHA with $638 million.
The sturdy institutional demand comes as not less than 16 exchange-traded funds await SEC approval, with choices delayed by the government shutdown now entering its third week.
Nate Geraci of ETF Store noted that “as soon as authorities shutdown ends, spot crypto ETF floodgates open,” calling it “ironic that rising fiscal debt and typical political theater” are holding up approvals for crypto merchandise designed to deal with these precise points.
The crypto trade was set for a flood of ETF approvals in October, with the SEC scheduled to make last choices on not less than 16 purposes, plus one other 21 filed within the first eight days of the month.
Polymarket bettors now show a 98% prediction that the federal government shutdown will proceed previous October 15, up from 43% on October 2.
The shutdown started after Republicans and Democrats failed to attain a funding settlement by October 1, leaving the SEC working with solely important employees.
Republicans demand rolling again spending to scale back the nationwide debt, now exceeding $37.8 trillion, roughly $111,000 per individual, whereas rising funding for border enforcement.
Democrats oppose healthcare cuts and search extension of expiring tax credit.
The Senate isn’t scheduled to maintain votes till Tuesday, leaving no fast avenue to finish the stalemate.
Whale Returns With New $163M Short as Market Digests Crash
The controversial whale’s new bearish place comes simply days after accusations of insider buying and selling for timing the earlier quick half-hour earlier than Trump’s tariff announcement.
Crypto analyst MLM suggested that the dealer “performed an enormous function in what occurred” and should have contributed to the weekend’s liquidation cascade.
On-chain trackers revealed over 250 wallets misplaced millionaire standing on Hyperliquid following the selloff.
The sharp volatility has reignited debates in regards to the integrity of the crypto market, with SWP Berlin researcher Janis Kluge noting that “crypto persons are realizing at present what it means to have unregulated markets — insider buying and selling, corruption, crime, and nil accountability.“
He called it “playing dressed up as buying and selling or funding.”
A crypto whale who just lately pocketed $192 million from a wonderfully timed quick is again with one other large bearish wager in opposition to Bitcoin.#Crypto #Whalehttps://t.co/NYvZcMjax8
— Cryptonews.com (@cryptonews) October 13, 2025
Most importantly, with this whale again, the group is curious what he is aware of this time. Is Bitcoin in danger once more?
Technical Analysis Points to Critical Resistance Test
Bitcoin at the moment trades round $115,000, recovering inside an ascending channel that has guided worth motion since April lows round $86,000.
The asset held decrease channel assist at $110,000 to $112,000 through the selloff, with the higher boundary projecting towards $126,000 to $128,000.
The important $116,100 resistance degree represents the midpoint between the $102,000 low and $126,000 high, making a battleground for future course.
As it stands now, Bitcoin should reclaim $116,000 with conviction to probably set off momentum towards $120,000 to $126,000.
The most possible near-term situation entails consolidation between $110,000 and $118,000 as markets digest the liquidation occasion.
Failure of assist round $110,000 to $112,000 would possible speed up decline towards $100,000 to $105,000, invalidating the bullish channel.
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