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Bitcoin, Ethereum Recover After Largest Liquidation in Crypto History
The crypto market has begun to claw back losses following a sell-off that resulted in one of the worst liquidation events in its history.
On Friday, Bitcoin fell from $121,000 to as low as $109,000 over a seven-hour period, erasing all gains made from an early “Uptober” rally. Ethereum dipped to a low of $3,686 while Solana touched just above $173, CoinGecko data shows.
The volatile trading session triggered a “flash crash of liquidations,” wiping almost $7 billion across all markets within one hour, with $5.5 billion coming from longs, Sean Dawson, head of research at on-chain options platform Dervie said.
When the dust settled, nearly $20 billion in liquidations across all digital assets had been wiped out in a single day on Friday, with $16.7 billion in long positions making up the majority, CoinGlass data shows.
Binance Pays $283 Million in Compensation Following Friday's Depegs, Covering User Losses
Binance said it paid out around $283 million to users of three assets that depegged on the exchange during Friday’s crypto crash.
The exchange also downplayed speculation that the depeg caused the market crash, arguing instead the crash came first.
Binance said existing years-old limit orders for certain tokens, such as ATOM, contributed to some heavy altcoin selloffs on the exchange.
Hyperliquid Whale Who Made $150 Million with Short Bet Opens New $160 Million Short
A Hyperliquid trader who caught the attention of the crypto industry with a well-timed short bet on Friday has opened a new position, putting over $16 million into a 10x leveraged short bet on the price of Bitcoin, a trade with over $160 million notional value.
The whale is currently up over $4 million in unrealized profit as of publishing time, according to HypurrScan data, with a liquidation price of $123,500 — below Bitcoin's recent all-time high of $126,080. The trader entered the trade at a BTC price of $117,370; the world's largest cryptocurrency is currently trading around $114,430, according to The Block's Bitcoin Price page.
The trader first caught attention after onchain analysts noticed that a single Hyperliquid account profited more than $150 million by shorting the prices of bitcoin and ether shortly before President Trump's announced new 100% tariffs on Chinese imports Friday night, which sent crypto markets reeling and led to record liquidations on centralized and decentralized exchanges, like Hyperliquid.
Tokenization Firm Securitize Said to Be in Talks With Cantor SPAC
Securitize, a blockchain firm that tokenizes investments, is in talks to go public via a blank-check company started by Cantor Fitzgerald LP, according to people with knowledge of the matter.
A merger with Cantor Equity Partners II Inc. would value Securitize at over $1 billion, said the people, asking not to be identified discussing private information. Deliberations are ongoing and Securitize could decide to remain private, the people said.
A representative for Cantor declined to comment. A representative for Securitize didn’t immediately respond to a request for comment.
Polymarket Will Launch a Token, But Probably Not in 2025: Sources
Polymarket plans to launch its own native crypto token, but likely not until next year, sources familiar with the matter told Decrypt.
The launch of the Polymarket token would follow a $2 billion investment in the prediction markets business from New York Stock Exchange owner Intercontinental Exchange, announced earlier this week, which valued the company at $9 billion. It would also follow the company’s imminent reentry into the U.S. market after being effectively banned by the CFTC in 2022.
Polymarket does not plan to launch its token until it has regained a foothold in the U.S. market, currently dominated by competing prediction market Kalshi, sources told Decrypt.
Bitcoin & Ethereum Spot ETF Flow
The overall net outflow of the US Bitcoin spot ETF on Friday was $4.5 million. The total net asset value of Bitcoin spot ETFs is $158.96 billion, and the ETF net asset ratio (market value compared to total Bitcoin market value) is 6.98%.
The Bitcoin spot ETF with the highest net inflow on October 10 was iShares Bitcoin Trust ETF (IBIT), with a net inflow of $74.21 million, according to SoSoValue.
Source: SoSoValue
The overall net outflow of the US Ethereum spot ETF on Friday was $174.83 million. The total net asset value of Ethereum spot ETFs is $27.51 billion, and the ETF net asset ratio (market value compared to total Ethereum market value) is 5.89%.
The Ethereum spot ETF with the highest net outflow on October 10 was iShares Ethereum Trust ETF (ETHA), with a net outflow of 80.19 million, according to SoSoValue.
Source: SoSoValue