One year ago, the cryptocurrency market experienced its most severe liquidation event on record. On October 10, 2025, escalating US-China trade tensions triggered a sharp sell-off that cascaded through leveraged positions across the industry. Within 24 hours, over $19 billion in positions were liquidated—the worst such day in the then 16-year history of cryptocurrency markets.
Bitcoin bore the brunt of the collapse. The asset had reached approximately $126,000 just 48 to 72 hours earlier, marking an all-time high. On October 10, it plunged from $122,000 to $105,000 on most exchanges, and fell to $101,000 on some platforms. Over 1.6 million traders were caught by the sudden move and liquidated.
The aftermath proved prolonged and severe. Following the October liquidation event, Bitcoin entered an extended downturn that reached its lowest point on July 1 when the asset fell below $58,000—a 53% decline from the October peak. Bitcoin now trades around $82,000 to $83,000, still approximately 34% below the 2025 high.
Recent market conditions show signs of volatility but also some recovery signals. Bitcoin experienced a pullback this past week, dipping from $87,000 to $80,400 before rebounding to current levels. During that pullback, over $1 billion in leveraged positions were liquidated in less than a day. On the positive side, at least five bitcoin indicators tracked by BIT recently moved into territory historically associated with bullish market regimes.
