{"id":8476,"date":"2025-10-11T11:55:48","date_gmt":"2025-10-11T10:55:48","guid":{"rendered":"https:\/\/kriptodnevnik.com\/?p=8476"},"modified":"2025-10-11T11:55:48","modified_gmt":"2025-10-11T10:55:48","slug":"20-billion-washed-out-why-bitcoins-great-cleansing-has-only-just-begun","status":"publish","type":"post","link":"https:\/\/sputnet.com.ng\/dnevnik\/2025\/10\/11\/20-billion-washed-out-why-bitcoins-great-cleansing-has-only-just-begun\/","title":{"rendered":"$20 Billion Washed Out: Why Bitcoin&#8217;s Great Cleansing Has Only Just Begun"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Bitcoin (BTC) is reeling. After touching a new all-time high just days ago, the flagship cryptocurrency has been violently dragged back to the $110,000 level, following a record-shattering liquidation cascade. An estimated $20&nbsp;billion in leveraged positions were wiped out in a chaotic 24-hour period\u2014the largest single-day market wipeout in crypto history.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For many long-term veterans, this is not a surprise. It\u2019s the overdue, painful &#8220;crypto cleanse,&#8221; and traders warn the bottom is still nowhere in sight, with the critical $100,000 mark squarely in view.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Geopolitical Earthquake That Shook Crypto<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">This crash was not born in the crypto ecosystem; it was imported from global geopolitics. The trigger was the sudden escalation of the US-China trade war, specifically President Donald Trump\u2019s announcement of a planned 100%&nbsp;tariff on Chinese imports.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Risk-Off Contagion: Global financial markets instantly flipped into a &#8220;risk-off&#8221; mood. The S&amp;P\u00a0500 posted its largest decline in months, dragging down volatile risk assets across the board. Bitcoin, which often trades as a high-beta tech stock, was punished severely.<\/li>\n\n\n\n<li>The Flight to Gold: In a classic move, investors sought sanctuary in established safe havens. Gold (XAU\/USD) surged back above $4,000 per ounce, starkly highlighting crypto\u2019s current positioning: it is not yet a safe haven when macro fears dominate.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This external shock exposed the sheer greed and over-leverage that had built up in the crypto derivatives market.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Anatomy of a Record Liquidation<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The scale of the collapse was unprecedented. Data from CoinGlass showed that nearly $20\u00a0billion in bets were erased, predominantly long positions, traders wagering on higher prices. The actual total is believed to be higher, as major exchanges struggled with the volatility.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Veteran trader Skew noted that the downside volatility was so severe that liquidity vanished, with spreads across the board becoming &#8220;super wide.&#8221; This indicates that market makers\u2014the crucial players who facilitate smooth trading\u2014stepped back from the chaos to assess the risk, leaving the remaining leveraged positions to crash into a void of bids.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The technical setup only worsened the panic:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deeply Oversold: Bitcoin\u2019s RSI (Relative Strength Index) hit levels not seen since the last major trade war escalation months ago, a sign that the selling pressure was overdone.<\/li>\n\n\n\n<li>Technical Void: Order book heatmaps showed a severe imbalance: strong price resistance sits above $120,000, but the path down to $100,000 is dangerously clear, lacking significant support.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">The Cleansing of a Bull Market&#8217;s Excess<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The market reset is focused on two goals:<\/p>\n\n\n\n<ol start=\"1\" class=\"wp-block-list\">\n<li>Purging Leverage: The forced liquidations have flushed out the &#8220;weak hands,&#8221; setting the stage for more sober, organic growth fueled by spot buying, which is now starting to appear on platforms like Coinbase.<\/li>\n\n\n\n<li>Structural Integrity: By shaking out the speculative excess, the market can focus capital back on fundamentally sound assets, a necessary step before the next sustained leg of the bull run can begin.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">The market is currently engaged in &#8220;ping-pong&#8221; price action around the $110,000 mark, absorbing the shock. However, if the geopolitical uncertainty deepens, or if a high-volume breakdown occurs, the market will almost certainly test the psychological and technical bulwark at $100,000. Whether that line holds will determine if the &#8220;cleansing&#8221; is swift or if the market has truly reached a new, prolonged phase of correction.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) is reeling. After touching a new all-time high just days ago, the flagship cryptocurrency has been violently dragged [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8478,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[11],"tags":[162,381,36],"class_list":["post-8476","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editorial","tag-bear","tag-bitocin","tag-btc"],"_links":{"self":[{"href":"https:\/\/sputnet.com.ng\/dnevnik\/wp-json\/wp\/v2\/posts\/8476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sputnet.com.ng\/dnevnik\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sputnet.com.ng\/dnevnik\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sputnet.com.ng\/dnevnik\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sputnet.com.ng\/dnevnik\/wp-json\/wp\/v2\/comments?post=8476"}],"version-history":[{"count":0,"href":"https:\/\/sputnet.com.ng\/dnevnik\/wp-json\/wp\/v2\/posts\/8476\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sputnet.com.ng\/dnevnik\/wp-json\/wp\/v2\/media\/8478"}],"wp:attachment":[{"href":"https:\/\/sputnet.com.ng\/dnevnik\/wp-json\/wp\/v2\/media?parent=8476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sputnet.com.ng\/dnevnik\/wp-json\/wp\/v2\/categories?post=8476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sputnet.com.ng\/dnevnik\/wp-json\/wp\/v2\/tags?post=8476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}