Nearly $300 billion left the crypto market cap in October, and liquidations topped $6 billion. Bitcoin fell less than Ethereum and several large stocks, and AMBCrypto points to large short positions as a possible fuel for a November rally.
Nearly $300 billion was wiped off the crypto market cap in October as Uptober ended without delivering. It was the first monthly loss in four months.
Large-cap assets were hit by selling pressure. Bitcoin corrected 7.3%, and BTC closed its second back-to-back negative month, a streak the source calls rare and not seen in over a decade.
Liquidations point to a leverage flush
Across the top seven exchanges, the market saw $4.2 billion in long liquidations against $1.9 billion in short liquidations, bringing the total above $6 billion.
That figure is up by 600%+ from September, which AMBCrypto reads as a massive leverage flush and a sharp reset in bullish positioning.
Bitcoin holds up better than other risk assets
Bitcoin still fared better than other risky assets. Ethereum dropped 16.3%, more than 2x BTC's decline, while Meta corrected 15% and Nvidia fell over 10% in the same period.
Meanwhile, Bitcoin dominance rose by 2% to 60.9%, which AMBCrypto says shows capital continuing to flow into Bitcoin even as broader U.S. markets face selling pressure.
Shorts could fuel a November rebound
On-chain data shows $15 billion in BTC shorts stacked above $85k against only $2.5 billion in longs, a 6x imbalance that suggests more liquidity sits on the upside. If Bitcoin re-tests key levels, a wave of short liquidations could trigger a broader "Moonvember" rally, the source asks.
Matt Mena, Senior Crypto Research Strategist at 21Shares, said BTC holding the $80k support leaves the market room to recover, and that a break above $82k could open the door toward $85k and eventually $90k.
Source: AMBCrypto
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