Crypto Bulls and Bears Lose $300M Each as Bitcoin Climbs to $113K, Then Dumps
The crypto market faced another sharp whipsaw as Bitcoin surged to $113,000 before quickly reversing course. In just 24 hours, BTC swung between $107,000 and $113,000, leaving both bullish and bearish traders with heavy losses. Data reviewed by CoinDesk from CoinGlass showed that around $657 million worth of leveraged positions were liquidated, split almost evenly between longs and shorts.
Major altcoins also mirrored the pullback. Ether and Solana both declined as the broader digital asset market slipped by roughly 2.5%. The sudden volatility once again highlighted the fragile sentiment in crypto trading, where even brief rallies are met with sharp corrections, shaking out traders on both sides of the market.
Market snapshot: BTC’s $113K pop fades
Bitcoin’s brief recovery attempt late last week gave way to renewed selling, underscoring fragile risk appetite into the final stretch of October. As of Wednesday trade in Asia, spot BTC hovered near $108,000, while ETH traded around the high-$3,000s. The Economic Times
Liquidations surge as leverage resets
CoinDesk reported about $657M in 24-hour liquidations, split roughly $355M longs vs. $301M shorts. By asset, Bitcoin accounted for ~ $340M, with ether near $200M, and Solana also seeing tens of millions in forced unwinds. Such moves are common when margin falls below maintenance levels on perpetual swaps, forcing automated position closures and potential cascade effects.
Exchange color: positioning stabilizes
“Despite Bitcoin’s sharp pullback over the past 24 hours, positioning on our futures platform has actually continued to stabilize… the long/short ratio on Bitcoin perpetuals has shifted back toward neutral territory,” said Alexia Theodorou, head of derivatives at Kraken. She added that while sentiment remains fragile, a “more balanced market” is emerging after an initial wave of capitulation. (CoinDesk).
ETF flows and the $113K threshold
Separately, U.S. spot Bitcoin ETFs saw renewed net inflows this week as BTC briefly reclaimed the $113K handle, a level that has acted as a tactical pivot during October’s choppy trade.
Trading dynamics when Bitcoin climbs to $113K then dumps
Short-dated funding and skew often flip rapidly around round numbers. Whipsaws at $113K reflect hedging flows, thin weekend liquidity pockets, and forced deleveraging after rapid moves. Keeping risk tight around inflection levels can help avoid being caught on both sides of the chop.
Risk controls if Bitcoin climbs to $113K then dumps
Expect higher slippage and gapping near liquidation cascades.
Monitor exchange risk parameters; maintenance margin changes can accelerate moves.
Consider staged entries/exits to limit adverse selection around squeezes.
Context & Analysis
The equal split of long and short liquidations supports the view that range-bound, headline-sensitive trade is dominating after October’s earlier deleveraging shock. With spot ETFs intermittently absorbing sell pressure, a sustained trend may require a macro catalyst or a decisive technical break beyond recent ranges.
Conclusion
Bitcoin’s inability to sustain above $113,000, along with the near-equal liquidation of long and short positions, underscores a fragile and highly two-sided market. The sharp reversals show that traders remain uncertain, with sentiment quickly shifting between bullish and bearish extremes.
Until leverage levels cool off and market liquidity strengthens, similar volatile swings are likely to persist. Price action around major thresholds could continue to trigger rapid shakeouts, making disciplined risk management essential for anyone navigating the current crypto environment.
FAQs
Q : What caused the liquidations?
A : Rapid price reversals pushed leveraged positions below maintenance margins, triggering forced unwinds on perpetual futures venues.
Q : How much was liquidated in total?
A : Around $657 million over 24 hours, with losses split nearly evenly between longs (~$355M) and shorts (~$301M).
Q : Did Bitcoin lead the liquidations?
A : Yes. BTC accounted for about $340M, followed by Ether near $200M and additional tens of millions for Solana.
Q : Where is Bitcoin trading now?
A : Around $108,000 during Asia hours on Oct. 22, 2025 (intraday). Prices are volatile and can change quickly.
Q : What does Kraken say about sentiment?
A : Kraken’s derivatives head said positioning has stabilized toward neutral despite high volatility.
Q : Are ETFs affecting price action?
A : Yes. Spot BTC ETFs saw net inflows as BTC retested $113K, suggesting dip-buying via funds.
Q : How can I track liquidations next time Bitcoin climbs to $113K then dumps?
A : Use liquidation dashboards (e.g., CoinGlass) and monitor funding, open interest, and ETF flow headlines for confirmation.
Facts
Event
BTC spikes above $113K, reverses; ~$657M in leveraged crypto positions liquidatedDate/Time
2025-10-22T11:32:00+05:00Entities
Bitcoin (BTC); Ethereum (ETH); Solana (SOL); Kraken (exchange); CoinDesk (publisher); CoinGlass (data)Figures
BTC range ~$107K–$113K; liquidations: ~$657M total (~$355M longs/~$301M shorts); BTC liquidations >$340M; ETH ≈$200MQuotes
“Positioning… has shifted back toward neutral territory… we’re seeing a more balanced market emerge following an initial wave of capitulation.” — Alexia Theodorou, Head of Derivatives, Kraken (via CoinDesk)Sources:
CoinDesk (Malwa/Godbole) https://www.coindesk.com/markets/2025/10/22/bulls-and-bears-lose-usd300m-each-as-bitcoin-climbs-to-usd103k-then-dumps ; CoinGlass — https://www.coinglass.com/LiquidationData