10. října 2025

BTC losses were driven by cascading margin calls

Why is BTC’s price down 10.10.2025?

BTC’s losses were driven by cascading margin calls

Hyblock Capital | Crypto Derivatives Analytics & Trading Tools

TLDR

Bitcoin fell 8.59% over the last 24h, underperforming its 7-day (-9.37%) and 30-day (-2.75%) trends. The drop aligns with a 10.13% crypto market decline and reflects three key drivers:

Leverage Unwind – $16B+ liquidations after Trump’s China tariff threat (CoinDesk).
Technical Breakdown – Failed defense of $117K support, bearish RSI (42.36) and MACD divergence.
Sentiment Shift – Fear & Greed Index plunged to 35, lowest since March 2025.

Deep Dive

1. Macro Shock + Leverage Cascade (Bearish Impact)

Overview: Bitcoin’s drop followed former U.S. President Trump’s announcement of 100% tariffs on Chinese imports, triggering a historic $16B liquidation of leveraged long positions (CryptoPotato).

What this means: Perpetual futures markets (where traders often use 20–100x leverage) amplified the sell-off. Forced liquidations erased liquidity, causing even algorithmic traders to struggle with order execution.

What to look out for: Weekend liquidity gaps (spot ETF closures) could prolong the bottoming process.

2. Technical Support Failure (Bearish Impact)

Overview: BTC broke below the “cost price defense line” of $117K, a key level large investors defended since August (Binance News).

What this means:
- Daily RSI (42.36) shows weakening momentum.
- MACD histogram turned negative (-32.86), signaling bearish crossover risk.
- Next critical support: $109K (78.6% Fibonacci retracement).

3. Sentiment Collapse (Mixed Impact)

Overview: The Crypto Fear & Greed Index fell 37 points to 35 (“Fear”) in 24h, the steepest drop since April 2025 (Cointelegraph).

What this means: Extreme fear often precedes contrarian rebounds, but retail panic (37K+ small wallets exiting) contrasts with whale accumulation (231 new 10+ BTC wallets). Historically, this divergence precedes rallies, but macro risks delay recovery.

Conclusion

Bitcoin’s drop reflects a perfect storm of geopolitical risk, derivatives carnage, and technical breakdowns. While oversold conditions suggest a potential rebound, the $109K–$114K zone is critical to stabilize sentiment.

Key watch: Can BTC hold $109K support amid weekend liquidity constraints, or will tariff fears drive another leg down?

CMC AI can make mistakes, please DYOR. Not financial advice.

Answered by CMC AI.
Try CMC AI on: https://coinmarketcap.com/currencies/bitcoin/
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Triggering a historic $16B liquidation of leveraged long positions

Perpetual futures markets (where traders often use 20–100x leverage) amplified the sell-off.
Forced liquidations erased liquidity, causing even algorithmic traders to struggle with order execution.

What to look out for: Weekend liquidity gaps (spot ETF closures) could prolong the bottoming process.

Extreme fear often precedes contrarian rebounds, but retail panic (37K+ small wallets exiting) contrasts with whale accumulation (231 new 10+ BTC wallets).
Historically, this divergence precedes rallies, but macro risks delay recovery

Crypto Market Loses $670 Billion on CEX Auto Liquidations, Altcoins Crash Intensifies
#coingape.com

Hyperliquid DEX Outperforms Top Crypto Exchanges Coinbase, Binance, Robinhood With Zero Downtime
coingape.com

Crypto Market Crash With 100% Trump Tariff Announcement on China
coingape.com

Bitcoin plummets to $102K on Binance as Trump announces 100% tariffs on China
cointelegraph.com

Bitcoin may get ‘dragged around a bit’ amid Trump tariff fears: Exec
cointelegraph.com

Salmond explained that Bitcoin’s price dislocation between crypto exchange Coinbase, where the BTC/USD pair fell to $107,000 and and crypto exchange Binance perpetual futures, where the BTC/USDT pair crashed to $102,000, “really illustrates the severity of the cascading liquidations and how stops were completely obliterated.”

Crypto Fear and Greed Index

https://www.cryptogreedindex.com

https://coinstats.app/fear-and-greed

https://www.coinglass.com/pro/i/FearGreedIndex

https://coinmarketcap.com/charts/fear-and-greed-index/