Institutions Scoop Up BTC and ETH After Crypto's Biggest Liquidation Event

October’s crypto crash wiped $1 trillion, but Bitcoin and Ethereum have staged an impressive recovery thanks to institutional buying.

Bitcoin has mounted a strong recovery following its largest liquidation event on record, climbing back to a peak of $116,000 after rising by 3% on Monday. Ethereum also gained 9% over the past day as it rose to $4,200 at one point.

One of the main factors behind the prompt uptick is institutional accumulation of both assets.

Wall Street Moves In

CryptoQuant found that Bitcoin’s Coinbase Premium Index reached a 19-month high on October 10, indicating a surge in institutional buying activity during a sharp market downturn. As Bitcoin’s price dropped from $122,000 to under $110,000 on the US exchange, the Coinbase Premium Index, which measures the price difference between USD pairs on Coinbase and its USDT pairs on Binance, climbed to 0.182. This figure is its highest reading since March 2024.

Typically, during such instances, the premium contracts or turn negative during sell-offs due to selling pressure from US investors. The unexpected spike during a price correction instead points to significant accumulation from US-based institutions, indicating strong demand for Bitcoin at discounted levels.

This is a classic case of large investors “buying the dip,” where investors exploit market panic and liquidity to build long-term positions. The move also implies that Bitcoin may have found a new support floor near the $110,000 mark, as institutions acted as stabilizing buyers.

CryptoQuant explained that steady accumulation from this cohort could obstruct downside pressure and aid in a renewed rally once selling momentum subsides. A similar trend was seen in Ethereum as well.

Ethereum’s Coinbase Premium Index also soared to a whopping level of 6.0 on the same day, and was its highest reading of 2025 as institutional accumulation surged during a major market downturn. In this case as well, large-scale investors viewed the event “not as a crisis, but as a prime opportunity to accumulate ETH at lower prices.”

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“This stark divergence between the US and global market sentiment underscores the strong long-term conviction held by major players in Ethereum’s future. It suggests that a robust support floor is being established by smart money.”

What’s Next?

Bull Theory described the latest market crash as a pre-planned liquidation event triggered by US President Donald Trump’s trade announcement, one that could ultimately reset the market for the next bullish leg. According to the analysis, two days before Trump’s Truth Social post about potential tariffs on China, one of Bitcoin’s oldest wallets quietly began opening massive short positions on Bitcoin and Ethereum, which were worth billions of dollars.

When Trump later confirmed 100% tariffs on all Chinese imports starting November 1, global markets recoiled. The S&P 500 fell over 2%, Bitcoin plunged to $102,000, and altcoins collapsed as much as 90%. More than $20 billion in positions were liquidated, and roughly $1 trillion in crypto market capitalization was wiped out within hours.

Bull Theory said that the same whale doubled their short exposure 30 minutes before Trump’s official announcement and then closed positions for an estimated $200 million profit, a sequence of moves that looked deliberate. This wasn’t a typical retail-driven dump but a systemic deleveraging across funds and exchanges, as even stablecoins briefly depegged.

Importantly, Bull Theory framed the chaos as a structural purge similar to those seen in March 2020 and mid-2023, during which excessive leverage was cleared and ultimately led to major upcycles.