One year ago today, crypto had its largest liquidation day on record: about 19.1B USD in leveraged positions wiped out, per CoinGlass. Yet Binance BTC funding looked calm right before it. (as of 16:33 ICT, Oct 10, 2026)
What happened on Oct 10, 2025:
• CoinGlass counted 1.62M traders liquidated, about 16.6B USD of it longs. CoinDesk Research put the drop in total perp open interest at 43%, from 217B to 123B USD in a day.
• On Binance spot, $BTC fell from about 116,700 to 102,000 in roughly two hours, on daily volume about 3x the prior week's average.
• In the three days before, BTCUSDT perp funding settled between +0.0008% and +0.01% per 8 hours, at or below the usual 0.01% baseline.
Where Binance BTC derivatives stand now:
• BTC trades near 82,900, about 34% below the 126,200 high of Oct 6, 2025, and above the 80,394 low printed on Oct 8.
• Funding has moved between -0.004% and +0.0075% over the past week, calm again.
• BTCUSDT perp open interest is about 92,900 BTC (~7.7B USD), down 15% from 109,200 BTC on Sep 22.
• The account long/short ratio jumped to 1.87 on Oct 9 (about 65% of accounts long), while top traders' position ratio eased from 2.09 to 1.61 since Oct 1.
My read: last year, funding did not flag the risk. The damage came from crowded positioning meeting a macro shock and thin order books. Binance BTC open interest has shrunk for three weeks, which means less fuel for a cascade, but the crowd leans long again while larger accounts trim. Neutral funding says little about how much leverage is stacked or how deep the book is. This is a positioning read, not a forecast.
Worth watching: whether open interest rebuilds faster than price, and whether the long-heavy account ratio holds if BTC revisits the Oct 8 low.
What do you treat as your early warning for a leverage flush: funding, open interest, or long/short skew?
Not financial advice.
What happened on Oct 10, 2025:
• CoinGlass counted 1.62M traders liquidated, about 16.6B USD of it longs. CoinDesk Research put the drop in total perp open interest at 43%, from 217B to 123B USD in a day.
• On Binance spot, $BTC fell from about 116,700 to 102,000 in roughly two hours, on daily volume about 3x the prior week's average.
• In the three days before, BTCUSDT perp funding settled between +0.0008% and +0.01% per 8 hours, at or below the usual 0.01% baseline.
Where Binance BTC derivatives stand now:
• BTC trades near 82,900, about 34% below the 126,200 high of Oct 6, 2025, and above the 80,394 low printed on Oct 8.
• Funding has moved between -0.004% and +0.0075% over the past week, calm again.
• BTCUSDT perp open interest is about 92,900 BTC (~7.7B USD), down 15% from 109,200 BTC on Sep 22.
• The account long/short ratio jumped to 1.87 on Oct 9 (about 65% of accounts long), while top traders' position ratio eased from 2.09 to 1.61 since Oct 1.
My read: last year, funding did not flag the risk. The damage came from crowded positioning meeting a macro shock and thin order books. Binance BTC open interest has shrunk for three weeks, which means less fuel for a cascade, but the crowd leans long again while larger accounts trim. Neutral funding says little about how much leverage is stacked or how deep the book is. This is a positioning read, not a forecast.
Worth watching: whether open interest rebuilds faster than price, and whether the long-heavy account ratio holds if BTC revisits the Oct 8 low.
What do you treat as your early warning for a leverage flush: funding, open interest, or long/short skew?
Not financial advice.