Crypto traders carried substantial borrowed positions into October 10, 2025, the anniversary of a previous market shock, according to on-chain metrics. When Bitcoin fell toward $80,000 during the week, over $1 billion in leveraged positions were forcibly closed across derivatives exchanges.
The original October 10, 2024 event saw tariff concerns trigger more than $19 billion in liquidations. Heading into this year's anniversary, some market participants suggested traders had reduced risk exposure to avoid repeating that outcome.
However, leverage metrics painted a different picture. CryptoQuant's Estimated Leverage Ratio, which compares open derivatives positions to Bitcoin held on exchanges, climbed from approximately 0.234 on October 3 to roughly 0.256 by October 8. The ratio remained near 0.250 after the selloff, still elevated from the week's starting level.
Total open interest did decline from about $154 billion to roughly $142 billion, according to CoinGlass data, though leverage per unit of available Bitcoin had increased.
Funding rates—fees that bullish traders pay bearish traders—had fallen significantly from pre-crash levels. Deribit's Bitcoin funding rate stood near 7.1% annualized this week, compared with 26.9% before the 2024 crash. OKX showed funding averaging about 3.5% over seven days.
Market sentiment remained broadly positive despite the volatility. Alternative.me's Fear and Greed Index read 64, indicating greed, on Saturday and dipped only to 59 during Friday's selloff. Bitcoin traded at $82,699 following the move, approximately 35% below its October 2024 record near $126,000.
