Why October 10 Was The Bitcoin Bear Market Beginning<\/h2>\n
Darkfost pointed to a collapse in open interest measured in BTC terms. \u201cIn a single day, around 70,000 BTC were wiped out from Open Interest, bringing it back to its April 2025 levels,\u201d he wrote. \u201cThat\u2019s the equivalent of more than six months of Open Interest accumulation erased in one session. Since then, Open Interest has been stagnating and struggling to rebuild.\u201d<\/p>\n
The implication is less about the specific catalyst for the selloff and more about market structure after it. In Darkfost\u2019s telling, the Oct. 10 event wasn\u2019t just a price move; it was a sudden reduction in the market\u2019s capacity to carry leverage, which tends to compress speculative activity across the complex.<\/p>\n
\u201cLiquidity destruction in an already uncertain crypto market environment is not conducive to a return of speculation, which is nonetheless a key component of the crypto market,\u201d he added.<\/p>\n
That view resonated with Bitcoin Capital, which replied that \u201cnothing has been the same after 10\/10,\u201d adding that \u201cit actually feels like something broke.\u201d Darkfost\u2019s response was blunt about the path back: \u201cIt needs to be rebuilt and it can takes months \u2026\u201d<\/p>\n
![\"Open](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2026\/02\/HAKM-I4XcAAHoCG.jpg?resize=1024%2C576\")
<\/p>\n
In a follow-up post, Darkfost widened the lens beyond derivatives, describing an environment where spot participation has also cooled. He said Bitcoin is entering a fifth consecutive month of correction, with the October 10 event as a major driver due to its impact on futures liquidity, but \u201cnot the only factor at play.\u201d<\/p>\n
He flagged broader liquidity pressure via stablecoin flows and supply. According to his figures, stablecoin outflows from exchanges have coincided with an approximate $10 billion decline in aggregate stablecoin market capitalization over the same period, an additional headwind for risk-taking, particularly when leverage is already being de-risked.<\/p>\n
Spot volumes, he argued, tell a similar story of disengagement. Since October, BTC spot volumes have been cut roughly in half, with Binance still holding the largest share at $104 billion. He contrasted that with October levels when Binance volume \u201chad nearly reached $200B,\u201d alongside $53 billion on Gate.io and $47 billion on Bybit.<\/p>\n
![\"Bitcoin](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2026\/02\/HALKzsiWEAAZYNf.jpg?resize=1024%2C576\")
<\/p>\n
Darkfost characterized the contraction as a return to \u201clevels among the lowest observed since 2024,\u201d and read it as weaker demand rather than simply a lull in activity. The current setup, he wrote, \u201cremains uncertain and does not encourage risk-taking,\u201d arguing that a durable recovery would require monitoring liquidity conditions and, \u201cabove all,\u201d seeing spot trading volumes return.<\/p>\n
At press time, Bitcoin traded at $78,723.<\/p>\n
![\"Bitcoin](\"https:\/\/www.newsbtc.com\/wp-content\/uploads\/2026\/02\/BTCUSDT_2026-02-03_08-56-22.png?resize=1024%2C499\")
<\/p>\n","protected":false},"excerpt":{"rendered":"
Bitcoin\u2019s bear-market turn can be traced to Oct. 10, 2025, a session widely described as the largest crypto derivatives liquidation event on record, with roughly $19 billion in futures positions forcibly unwound as prices slid sharply off their highs. CryptoQuant contributor Darkfost argues the damage was structural as much as directional: open interest fell by…<\/p>\n","protected":false},"author":1,"featured_media":9877,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[28],"tags":[56,1642,55,69,61,120,121],"class_list":["post-9876","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","tag-bitcoin","tag-bitcoin-bear-market","tag-bitcoin-news","tag-bitcoin-price","tag-btc","tag-btc-news","tag-btc-price"],"_links":{"self":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/9876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/comments?post=9876"}],"version-history":[{"count":0,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/posts\/9876\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media\/9877"}],"wp:attachment":[{"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/media?parent=9876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/categories?post=9876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinsvalue.net\/blog\/wp-json\/wp\/v2\/tags?post=9876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}