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Bitcoin Falls as Short Sellers Step In

Bitcoin Falls as Short Sellers Step In

TheCryptoUpdates2025/10/17 17:06
By: Shivi Verma
BTC-0.31%ANT0.00%

Bitcoin got crushed this Thursday, dropping 3.5% to $106,990 as short sellers absolutely piled on through derivatives markets. In just 90 minutes, open interest jumped by over $591 million as traders bet against Bitcoin, pushing the price down from $115,000.

The selling got way worse over the next two hours as even spot sellers joined in. Open interest climbed another $1 billion as shorts kept attacking. This whole mess triggered $724 million in liquidations within 24 hours, with long positions getting destroyed; they accounted for $536 million of the total wipeout.

What’s interesting is that Coinbase showed mostly positive buying activity from spot investors throughout the chaos. Basically, American retail and institutional buyers were trying to buy the dip while offshore derivatives traders on Binance and Bybit kept shorting the hell out of Bitcoin.

CryptoQuant’s head of research said short traders are completely dominating perpetual futures markets right now while spot demand keeps shrinking based on on-chain data. Bitget’s chief analyst blamed the drop on macroeconomic uncertainty, rising geopolitical tensions, and overleveraged positions getting liquidated.

The CEO of Aragon thinks the market needs time to find its footing after such a massive flush-out. As long as macro uncertainty sticks around, he expects continued volatility. CryptoQuant remains bearish despite the dip-buying efforts and thinks the odds of a rally are tilted to the downside.

Conclusion

Bitcoin fell 3.5% to $106,990 as short sellers dominated derivatives, adding $1 billion in exposure and triggering $724 million in liquidations, while spot buyers on Coinbase absorbed selling pressure.

Also Read: Sharplink Sells Shares

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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