One year after the $19 billion crash, leverage risks still loom over crypto
- —On October 10, 2025, bitcoin plunged from about $122,000 to $105,000, triggering roughly $19 billion in liquidations
- —Open interest was near historic highs before the crash as traders piled into bullish bets
- —Perpetual futures and leverage remain a major part of crypto trading, with exchanges incentivized to keep offering them
- —Analysts advise avoiding leverage, watching open interest and funding rates, and holding bitcoin in self-custody
Why it matters: The risk of another October 10-style crash persists as derivatives dominate price discovery and bitcoin's four-year cycle no longer offers a reliable signal.
Source: CoinDesk
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