After a record $19 billion liquidation, traders eye a cautious return to “Uptober” optimism.
Bitcoin and Ethereum are back in recovery mode after one of the most dramatic sell-offs in crypto history. Over the weekend, the market began to stabilize following Friday’s sharp downturn triggered by fresh U.S. and China trade tensions.
Back on track?
Bitcoin climbed 3% in the past 24 hours to trade around $114,457, at a time of writing, after briefly plunging below $105,000 late Friday. Ethereum also regained ground, up 8.5% to $4,132 after sinking near $3,500 during the worst of the sell-off.
Initially, the market’s turmoil intensified when Bitcoin briefly fell below $110,000, triggering approximately $7 billion in liquidations across major cryptocurrencies. Coinglass noted that more than 1.6 million traders were liquidated in a single day on Friday, with total losses topping $19.1 billion, the largest in the market’s history.
$7B Liquidated in crypto in the last 24 hours
— HodlFM Team (@Hodl_fm) October 10, 2025
Trump's tweet triggered the sell out pic.twitter.com/JjiHStu3eM
$7B Liquidated in crypto in the last 24 hours. Source.
Rick Maeda, research associate at Presto Research, commented on this: “The [Friday] wipeout was triggered by macro headlines rather than anything crypto-specific,” he also noted that Beijing’s announcement of new export curbs on rare-earth materials and Washington’s 100% tariff plan on Chinese tech imports “hit during thin weekend liquidity,” setting off a cascade of forced liquidations.
Since then, the rebound has been partly mechanical. “Leverage was flushed out, cascades stabilized, and the market is seemingly not too concerned about the tariffs,” Maeda added, pointing out that prediction markets like Polymarket are pricing only a 15% chance the tariffs actually take effect by November.
‘Uptober’ narrative holds for now
Despite the weekend chaos, traders appear cautiously optimistic. Vincent Liu, chief investment officer at Kronos Research, said liquidity is returning as markets settle after the leverage wipeout and tariff fears ease, “turning last weekend’s panic into renewed risk appetite.”
Nassar Achkar, chief strategy officer at CoinW, agreed that the so-called “Uptober” trend remains intact. He said traders are watching macroeconomic data closely, including the upcoming U.S. CPI report and Federal Reserve meeting, as well as institutional ETF flows that continue to shape market sentiment.
Nick Ruck, director of LVRG Research, pointed to on-chain data showing renewed accumulation among large holders, suggesting “a confirmed market bottom for several oversold altcoins.”
Still, Maeda warned that while the “Uptober” uptrend might survive, the psychological effects of such a historic liquidation could linger. “Given the sheer size of the liquidations … the trauma may remain as a heavy headwind to many market participants,” he said, adding that traders are now far more alert to macro risk after the U.S.-China shock.
Stocks and sentiment bounce back
The weekend’s market turbulence showed how large traders can influence price swings during extreme conditions. A derivatives trader on the Hyperliquid exchange, wallet 0xb317, who earned $192 million betting against the market during last week’s flash crash, returned with another high-stakes short on Bitcoin. Using 10x leverage, the position is currently showing $3.5 million in profit, though it would be liquidated if BTC rises to $125,500.
This trader first drew attention by opening a massive short just 30 minutes before former President Trump announcement, coinciding with the $19 billion market liquidation.
Observers have called the trader an “insider whale,” and some speculate the position may have intensified the cascading losses. According to HyperTracker, over 250 wallets lost millionaire status on Hyperliquid following the Friday crash.
The market also saw bullish activity, such as a $11 million 40x leveraged long on Bitcoin, showing that both sides of the market were actively positioning amid extreme volatility. Coinbase (COIN) gained 1.7% early Monday after falling 7.8% on Friday, while Bullish (BLSH) rose 1.8%. Circle Internet Group (CRCL) rebounded 3.4% after an 11.7% drop.
Later on, adding to the optimism, President Trump appeared to soften his stance over the weekend, posting online: “Don’t worry about China, it will all be fine! … The U.S.A. wants to help China, not hurt it.”
That reassurance and a widespread belief that the tariff threat may not escalate has helped traders breathe again.
The market, after all, didn’t break. It just got tested.
Roman Zaika
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