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  3. Bitcoin Price Volatility Surges After $19 Billion in Liquidations

Bitcoin Price Volatility Surges After $19 Billion in Liquidations

A record-breaking $19 billion Bitcoin liquidation has shattered market confidence, triggering extreme volatility and leaving traders divided on what comes next.

Bitcoin Price Volatility Surges After $19 Billion in Liquidations
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Bitcoin Liquidation Wave Exposes Deep Market Hesitation

Bitcoin Price – The Bitcoin market is once again at a crossroads after more than $19 billion in leveraged positions were liquidated over the past weekend, marking one of the most turbulent episodes of 2025. The sudden wipeout triggered extreme volatility and has left both new and seasoned traders reeling as familiar trading patterns collapse.

According to market analysts, the market rhythm has fractured, with muted trading activity giving way to sudden flash crashes. CryptoQuant CEO Ki Young Ju highlighted a crucial shift, noting that paper Bitcoin holders—large investors who acquired BTC within the past 155 days—have officially gone underwater. While this doesn’t guarantee a crash or a rally, Ju warned: “Volatility is coming.”

Short-Term Traders Struggle, Long-Term Whales Hold Strong

The turbulence appears largely driven by short-term speculators, while long-term whales remain profitable. The market structure resembles early 2022, where leveraged trading dominated and spot demand weakened. Analysts suggest this imbalance may now be resetting, with deep-pocketed holders still steering from a position of strength.

Confidence Crisis Grips Bitcoin Market

Market analyst Murphy Chen pointed to a more psychological shift. His Investor Confidence Index has remained in the “hesitation zone” for 49 consecutive days—the longest streak on record. According to Chen, this signals a historic crisis of conviction, where traders remain trapped between fear and hope, unsure whether the bull run is pausing or ending.

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Diverging Opinions on What’s Next

The October 11 crash has divided sentiment. Bearish trader Garrett blamed the rebound on “excessive long leverage,” while analyst Phyrex called the event a “necessary cleansing” that purged speculative excess. Open interest in Bitcoin and Ethereum has dropped sharply, indicating a broad market deleveraging underway.

Meanwhile, influencers like James Crypto Guru are closing positions, and even major firms like Galaxy have revised key analysis reports—an unusual move that underscores the current market uncertainty.

Bitcoin Price Volatility Surges After $19 Billion in Liquidations

Bitcoin Price Volatility Surges After $19 Billion in Liquidations
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