Daily crypto liquidations nearly triple amid overheating leverage: Glassnode

Daily crypto liquidations have nearly tripled in the current cycle, rising from approximately $43 million combined daily long/short wipeouts in the last cycle to about $113 million now, driven by rising open interest and market leverage. A significant deleveraging event occurred on October 10th, where over $640 million in long positions were liquidated hourly as Bitcoin dropped sharply, causing open interest to collapse by 22%. Despite this leverage buildup, Bitcoin's spot trading volume has doubled compared to the prior cycle, with traders buying the dip. Glassnode notes that since the launch of US spot ETFs in early 2024, price discovery has shifted toward the cash market, while leverage is concentrated in futures. Furthermore, the Bitcoin network is increasingly functioning as a settlement rail, processing $6.9 trillion in transfers over the last 90 days, surpassing Visa and Mastercard volumes, indicating a more institutionally anchored market.

(Source：Cointelegraph)