Bitcoin Plunges 18% in Largest Crypto Liquidation Ever — $1 Trillion Wiped Out; $110K Key to Recovery

COINOTAG cited a Bitfinex report showing last week’s Bitcoin price slid from above $126,000 to below $103,310, an 18.1% pullback that precipitated the largest nominal liquidation event in the cryptocurrency market. Ethereum declined toward $3,500 and several illiquid altcoins experienced instantaneous drops exceeding 80% amid stressed order books. Over a three-hour window on October 10, roughly $1 trillion of value was removed as total market cap fell from $4.26 trillion to $3.3 trillion, with more than $19 billion liquidated in a single day. Bitfinex points to aggressive spot selling producing a 2.5x seller imbalance that was amplified by futures/perpetual flows. Such deleveraging episodes typically see mechanical rebounds as volatility contracts; sustaining above $110,000 would suggest stabilization, while failure may prompt a retest of the $100,000 area. The report also highlights divergence within the Federal Reserve on rate-cut timing amid a cooling U.S. economy.