Bitcoin is experiencing a significant market correction, with over $5 billion in positions liquidated in recent days. This follows the cryptocurrency’s new all-time high in October 2025, with current weakness attributed to tighter global liquidity and profit-taking. Analysts note the pattern mirrors historical cycles where sharp advances are followed by corrective phases and deleveraging.
Bitcoin’s monthly returns reveal a recurring cycle of sharp advances followed by corrective phases. Periods of consecutive monthly losses have historically marked the unwind of overheated rallies rather than structural failure.
As Bitcoin reached a new all-time high in October 2025, the monthly results contradicted the performance. This was attributed to tighter global liquidity, shifting ETF flows, and restrictive monetary conditions reducing marginal demand.
According to CoinGlass data, more than $5 billion in crypto positions were liquidated over four days. This marked the largest liquidation event since October 10, 2025, with long liquidations exceeding $2.5 billion on peak days.
Bitcoin recently fell below $80,000 to about $77,700, triggering $1.6 billion in weekly liquidations. A rebound toward $80,000 could liquidate $1 billion in short positions, potentially driving a short squeeze.
Bitcoin’s price decline now moves alongside a clear drop in Open Interest. As the price slipped toward $77,500, Open Interest dropped from about $47.5 billion to nearly $24.4 billion, indicating a reduction in leveraged positions.
Market structure remains weak as sentiment cools. Selling pressure persists, yet lower leverage points to growing fatigue.
