Daily futures wipeouts are surging as leverage builds, with a record unwind in October exposing how deeply derivatives now shape Bitcoin’s market cycle.
Daily crypto liquidations have nearly tripled this cycle as rising open interest and broader exchange activity fuel a more heavily leveraged market.
According to a new report from Glassnode and Fasanara, average daily futures wipeouts have risen from about $28 million in long positions and $15 million in shorts in the last cycle to $68 million long and $45 million short this time around.
This was most evident on Oct. 10, during the reset researchers called “Early Black Friday.” During the sell-off, more than $640 million per hour in long positions were liquidated as Bitcoin (BTC) slid from $121,000 to $102,000. Open interest collapsed 22% in under 12 hours, from $49.5 billion to $38.8 billion, in what Glassnode called one of the sharpest deleveraging events in Bitcoin’s history.
