Market currency change: How the October 10 liquidation reshaped the Bitcoin and Ethereum landscape

On the morning of October 10th, the market experienced an unprecedented structural shift as over $19 billion in positions were liquidated in a single session. This moment marked a fundamental turning point in the crypto landscape, signaling a shift from a traditional market pattern to a new reality driven entirely by leverage and liquidity forces.

The $19 Billion Story: The Moment Trust Shook

The liquidation on October 10th was not just a typical price dip. It was the largest forced liquidation in the history of the crypto market, triggered by a wave of margin calls. During those hours, we saw the collapse of the leveraged position ecosystem, leading to a series of cascading liquidations that broke through expected support levels.

Data tells a dark story: Bitcoin lost about 50% of its value from its previous peak, while Ethereum plummeted over 62%. But the impact wasn’t limited to these two main assets; $510 billion in total market capitalization of altcoins was wiped out.

The Scars Left Behind: Damage Analysis Over 140 Days

After 140 days, data reveals a complex but concerning picture. The market was not in a simple recovery phase but in a deep structural correction. The confidence that was shaken at that moment has not yet fully recovered, and the momentum that once propelled prices upward has completely faded.

What’s more worrying is the continued weak sentiment among market participants. Even with some recovery attempts, Bitcoin and Ethereum remain well below pre-event levels, indicating that rebuilding will take a long time.

Market Restructuring: Has a New Cycle Begun?

What happened on October 10th was not just a temporary dip that will pass with time. It was a complete transformation in how the market handles risk and liquidity. These events restructured the market’s price cycle fundamentally, signaling a shift from an era of safe leverage to one requiring more cautious calculations.

The question now is: Are we at the start of a long-term correction cycle, or are we in a deep accumulation phase before a new rally? The data may be ambiguous, but what’s clear is that the market has changed, and going back to the way things were is no longer an option.