October’s optimism for the crypto market is being tested as prices have fallen following a significant multi-billion-dollar liquidation. Despite this setback, experts believe that consistent demand for ETFs could still drive a recovery.
The month began on a high note for Bitcoin, with ETF investments and institutional interest propelling prices to unprecedented levels. Historically, October has been favorable for cryptocurrencies, but this momentum was disrupted by a $19 billion liquidation event exacerbated by thin trading volumes and crowded derivatives markets. Nonetheless, analysts remain hopeful about the potential continuation of the seasonal rally.
Initially resembling an ideal “Uptober,” Bitcoin saw its value soar due to ETF inflows and active market participation. However, unexpected liquidity issues coupled with political uncertainties derailed this upward trend.
In early October, Bitcoin surged into new territory with its price surpassing $126,000. According to Glassnode’s research report, Bitcoin managed to break through the $114k–$117k supply zone reaching an all-time high near $126k thanks to robust ETF inflows and renewed accumulation from mid-tier investors.
The term “Uptober” has long been associated with strong performance in cryptocurrency markets during October. Data from CoinGlass indicates that since 2013, Bitcoin has averaged over 46% returns in October — making it one of its best months historically.
This year’s optimism was interrupted on Oct. 11 when the market experienced its largest single-day liquidation ever recorded — wiping out approximately $19 billion from leveraged positions which drove BTC down near $102K before partially recovering.
Liquidity Challenges Amidst Leverage
A key observation made by some analysts was how thin order books amplified price volatility beyond mere selling pressure alone during these swings within bitcoin pricing movements noted Kaiko’s mid-October analysis:
“Volumes spiked on Friday as panic swept through crypto markets exposing stark liquidity gaps across BTC order books where there simply wasn’t enough resting depth available absorbing flow leading several exchanges’ orders appearing empty temporarily at major venues.”
– Kaiko
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Despite recent turbulence caused by flash crashes some experts argue seasonality remains intact K33 Research expressed increased optimism post-deleveraging phase citing reduced structural risks healthier overall setup now prevailing:
“We view upcoming weeks presenting opportune window deploying capital into BTC expecting reset perps normalization funding dynamics provide constructive foundation renewed upside momentum.”
– K33 Research
Glassnode highlighted pre-liquidation periods witnessed healthy institutional demand detecting over $2.2 billion US spot-ETF inflows within short span alongside steady mid-tier accumulation returning nearly entire circulating supply back profitable territory historically indicative late-stage durable rallies:
![](http://cnews24.ru/uploads/7a6/7a671cb6226fc80a2824c97942c3d633848e82d2.webp"e;&size="e;&1309x514"e;/)
Bitcoin price vs accumulation cohort | Source: Glassnode
Overall Uptober reveals dual nature big institutional flows initially boosting valuations however singular events such severe liquidity crisis compounded thinner orders congested derivatives rapidly erode gains achieved previously observed.
Future developments hinge less upon hype more whether participants including makers buyers sellers rebuild necessary depth ensuring continued strength otherwise risk marking period where rally encountered insurmountable barrier ultimately reversed course instead remembered hitting wall knocking backward unexpectedly.
Read more: Bitcoin dips below $113k—10-year low exchange supply drop could fuel recovery