Average daily bitcoin liquidations have surged this cycle as leverage and open interest reach unprecedented levels, according to a new report from Glassnode and Fasanara.
Leverage drives liquidation spikes
Glassnode data shows that average daily futures wipeouts have risen from about $28 million in long positions and $15 million in shorts last cycle to $68 million long and $45 million short in the current cycle.
The most dramatic event occurred on Oct. 10, dubbed “Early Black Friday,” when over $640 million per hour in long positions were liquidated as bitcoin fell from $121,000 to $102,000. Open interest collapsed 22% in less than 12 hours.
Futures activity has escalated sharply, with open interest reaching a record $67.9 billion and daily turnover peaking at $68.9 billion.
Perpetual contracts now represent more than 90% of this activity.
Spot volume and institutional flows rise
Bitcoin’s spot trading volume has also doubled compared to the previous cycle, moving into the $8 billion to $22 billion daily range.
During the Oct. 10 crash, hourly spot volume spiked to $7.3 billion as traders bought the dip.
The launch of U.S. spot bitcoin exchange-traded funds (ETFs) in early 2024 has shifted price discovery towards the cash market, while leverage has concentrated in futures.
Bitcoin’s market share has grown from 38.7% in late 2022 to 58.3% today, with monthly inflows ranging from $40 billion to $190 billion.
Realized capitalization has reached a record $1.1 trillion, and over $732 billion has entered the network since the 2022 cycle low.
Glassnode stated:
“This highlights a more institutionally anchored and structurally mature market environment.”
Bitcoin rivals major payment networks
The report also noted that bitcoin now processes more settlement volume than Visa and Mastercard, with $6.9 trillion transferred over the past 90 days.
Supply shifts to institutions
According to Glassnode, around 6.7 million BTC is held by ETFs, corporate treasuries, and other large entities.
Since early 2024, ETFs alone have absorbed about 1.5 million BTC, while balances on centralized exchanges have declined.
