Recent fluctuations in Bitcoin’s value have reignited worries about possible liquidation waves on centralized exchanges (CEXs). Data indicates that should Bitcoin fall below $109,000, the total long liquidation could reach $1.263 billion. On the other hand, if the price climbs above $113,000, short liquidations might total $1.373 billion, according to a
BlockBeats analysis
. These statistics, sourced from Coinglass, emphasize the vulnerability of leveraged trades as market participants prepare for heightened volatility. Yet, the story goes beyond price triggers, as recent large-scale moves by whales on Binance and the rapid expansion of decentralized exchanges (DEXs) add further complexity to the evolving market landscape.
Binance, recognized as the largest crypto trading platform globally, has experienced a notable increase in substantial deposits, with $5.56 billion in whale transactions—each over 1,000 BTC—flowing in over the past month, as reported by a
Yahoo Finance report
. On October 21 alone, $1.07 billion was deposited, coinciding with Bitcoin’s brief rally to $113,000 before it pulled back. Market observers are debating whether these inflows represent accumulation or a tactic to take advantage of potential liquidations. The debate intensified after accusations surfaced that Binance and market maker Wintermute may have worked together to influence prices during the October 10 downturn, which led to $19 billion in retail liquidations. Critics claim that actions such as restricting withdrawals and using internal profit-and-loss systems could undermine market fairness, as outlined in the Yahoo article.
At the same time, decentralized exchanges are mounting a challenge to CEX supremacy, with platforms like Hyperliquid achieving unprecedented perpetual trading volumes. In October, decentralized
perp
trading exceeded $1 trillion in monthly volume, fueled by services that provide round-the-clock trading, significant leverage, and no expiry dates, according to a
CryptoNews article
. Hyperliquid was at the forefront, processing $317.6 billion in trades and reaching a daily high of $78 billion. Industry professionals attribute the mainstream adoption of DEX perps to Hyperliquid, noting advancements in transaction speed, liquidity, and user experience. This trend highlights a rising interest in on-chain derivatives, as traders look for alternatives to centralized venues amid growing regulatory attention and concerns over manipulation.
The convergence of these developments—risks of CEX liquidations, significant whale activity on Binance, and the ascent of DEXs—signals a pivotal moment for the market. While traditional exchanges are under increasing scrutiny regarding transparency and governance, decentralized platforms are quickly catching up in terms of features. For now, Bitcoin’s price remains the key variable, with each dollar shift impacting leveraged trades and the wider crypto ecosystem.
