Glassnode

This heatmap highlights the intensity of Open Interest decline across the top 100 assets last Friday, revealing just how widespread the liquidation pressure truly was. 📈 https://glassno.de/3KMz0nQ

The recent sell-off occurred with over 90% of Bitcoin supply still in profit, with most losses coming from top buyers. Unlike the FTX and Luna crashes, when under 65% of supply was in profit, this was not a broad capitulation but a structurally different, leverage-driven event.

Bitcoin has stabilized above the 135-day moving average, while the Young Supply MVRV has reset toward 1.0. Together, these signal a market cooling from speculative extremes while maintaining structure. 🔗https://glassno.de/3Ja7Fve

#Bitcoin endured its largest leverage wipeout in history, with $19B in open interest erased and funding collapsing. The market is now recalibrating amid slower momentum, cooling profit-taking, and steady ETF demand. Read more in this week’s Market Pulse👇 https://glassno.de/3KSFQrL

Friday’s wipeout triggered the largest futures liquidation in Bitcoin’s history. Over $11B in open interest was erased as leverage was forcefully unwound. A historic deleveraging event that has reset speculative excess across the market.

Funding rates across the crypto market have plunged to their lowest levels since the depths of the 2022 bear market. This marks one of the most severe leverage resets in crypto history, a clear sign of how aggressively speculative excess has been flushed from the system.

🧵/6- Our #BTC Long/Short Bias chart, tracking the aggregate net positions of the largest BTC traders on Hyperliquid, showed a steep rise in net shorts starting in Oct 6th, well before Friday's events. While levels have since recovered, they remain deeply negative. Stay cautious.

🧵/5- Hyperliquid’s heatmap of #BTC liquidation clusters was virtually wiped clean. Levels both above and below spot were triggered, likely driven by a rapid buildup of liquidation levels in cross-margined accounts and traders closing positions in light of the events.

🧵/4- This was the largest liquidation event on record so far. And with incomplete reporting across exchanges, real figures are almost certainly larger.

🧵/3 - We saw the largest open interest wipe-out in history. For #BTC alone, over $10B in open interest was erased across all major exchanges.

🧵/2 - Altcoin funding rates plunged to a median of -0.4 yesterday – levels not seen since the 2022 bear market. Today, they’ve reset and bounced back above zero, signaling a swift shift in positioning.

🧵/1- While #Bitcoin corrected comparatively mildly, unsurprisingly, alts saw one of the sharpest daily drawdowns in years: the median return across alts was as low as –20%.

Analyzing the behavior of XRP investors who accumulated below ~$1, we see significant profit-taking as price surged above $2 (>100% gains). Two major realization waves—Dec 2024 and July 2025—have so far exhausted much of the market’s bullish momentum. 📉https://glassno.de/4q5doTC

#BTC ETF inflows have continued despite the recent pullback, showing that institutional demand remains steady even as derivatives traders get chopped. This suggests structural buying is still underpinning the market, helping to absorb volatility and stabilize price action.

#BTC Futures Open Interest remains elevated as both longs and shorts are being whipsawed by sharp price swings. The market is undergoing a leverage reset, with volatility flushing out excess positioning on both sides.

#Bitcoin continues to trade well above the Short-Term Holder Cost Basis. The rally remains below the Heated zone (+1 STD), suggesting momentum is high but approaching short-term risk conditions.

The Week On-Chain 40, 2025 Bitcoin broke above the $114k–$117k supply zone to new highs near $126k, driven by strong ETF inflows and mid-tier accumulation. On-chain remains firm, though rising leverage adds short-term risk. Executive Summary - On-chain profitability has surged, with 97% of supply now in profit. While elevated profit levels often precede consolidation, realized profits remain contained, suggesting an orderly rotation rather than distribution pressure. - The $117K supply cluster has been flipped into support, marking a structural pivot where small and mid-sized holders continue to accumulate, offsetting moderate profit-taking from larger entities. - Bitcoin has broken to new all-time highs near $126K, driven by renewed spot demand and record ETF inflows exceeding $2.2B. The surge in institutional participation has lifted both price and market activity, with spot volumes reaching multi-month highs as Q4 begins. - Derivatives markets expanded sharply during the rally, with futures open interest and funding rates rising as late longs entered. The current pullback is now testing this leverage, helping to reset positioning and restore balance. - In the options market, implied volatility has lifted, skew turned neutral, and call-heavy flows dominate. Momentum remains strong, but bullish positioning is becoming increasingly crowded. Read more in The Week On-Chain newsletter

Large traders demonstrated expert timing as $BTC reversed from recent highs. The shift to a net short bias suggests profit-taking on longs alongside new short positioning. Track these shifts in positioning in real time: 🔗https://glassno.de/3KFjk5N

With the price breaking above $117k, over 95% of the circulating supply has returned to profit. This is a hallmark of Euphoria phases, where widespread profitability often fuels accelerated profit-taking and rising market risk. 📈:https://glassno.de/4nDmNQG