Crypto Liquidations Hit $547 Million as Oil Rally Weighs on Markets

Bitcoin fell below $84,000 after escalating Iranian attacks on tankers in the Strait of Hormuz pushed oil prices higher, while losses intensified across smaller cryptocurrencies and forced liquidations surged to $547 million.

BTC slipped beneath the $84,000 mark shortly after midnight UTC as Brent crude climbed above $101 a barrel. Higher oil prices also pushed Treasury yields and the U.S. dollar higher, adding pressure to risk assets.

Selling was more pronounced across smaller tokens. The CoinDesk 80, which tracks a broad group of altcoins, fell nearly 4% over 24 hours, compared with a 2.5% decline for the CoinDesk 5. DeFi tokens dropped almost 6%, while the Memecoin Index fell roughly 5%. SAND, PUMP and STX were among the few tokens that gained since midnight UTC.

Crypto liquidations jumped 235% to $547 million over the past 24 hours, according to CoinGlass. Ether positions accounted for $174 million of the total, with ETH trading around $2,600 after falling 3.5% since midnight.

U.S. spot bitcoin ETFs provided some support before the latest decline. The funds recorded $119 million in net inflows Tuesday, according to SoSoValue, marking their fourth positive session in the past five trading days.

Fed Minutes in Focus

Markets are also awaiting minutes from the Federal Reserve’s September meeting, when policymakers raised interest rates by 25 basis points. Weaker employment data has reduced expectations for another increase this month, LVRG Research chief analyst Dan Khus told CoinDesk.

Traders will focus on whether the minutes suggest policymakers are prepared to wait or still see scope for another rate increase before the end of the year, Khus said.

Derivatives Positioning

Liquidations surge as traders remain cautious: Futures trading volume increased 16% to $182.85 billion over 24 hours, while open interest declined only 1% to $152.60 billion. Liquidations rose 216% to $548 million, with shorts accounting for more than 52% of taker volume. The combination of higher volume, largely unchanged OI and seller-heavy order flow points to active repositioning rather than a fresh wave of bullish leverage.

Bitcoin leverage remains subdued: BTC futures open interest climbed to 660,000 BTC, continuing its recovery from the 11-month low of 626,000 BTC recorded Sept. 30. However, OI remains well below this year’s record of 800,000 BTC. The relatively modest recovery does not yet indicate a return of aggressive leveraged bullish positioning.

Whale positioning differs by exchange: Whale accounts and positions on Binance show a bullish bias toward BTC, while traders on OKX remain bearish to neutral, according to CoinGlass. Binance whale positioning is bearish for ETH, SOL and XRP. The divergence indicates that larger market participants remain divided over the next direction.

Ether OI tests its downtrend: Ether futures open interest increased to 13.22 million ETH from 12.5 million a day earlier. If the rise persists, it would represent a decisive move above the downtrend line extending from the May peak of roughly 15.95 million ETH, potentially indicating renewed trader interest in ether.

STX gains alongside new longs: Stacks’ STX was the strongest performer among the top 100 cryptocurrencies over 24 hours, rising nearly 6%. Its futures OI increased 3%, with the combination of higher price and OI pointing to new long positions. AVAX and DOT also recorded notable increases in open interest.

Funding and order flow turn bearish: Perpetual funding rates for major assets such as bitcoin and ether moved slightly negative, meaning short traders are paying long traders to maintain positions. The 24-hour cumulative volume delta for major cryptocurrencies was also negative, indicating that sellers were more aggressive and were executing market orders against bids.

Crypto volatility remains subdued: Thirty-day implied volatility for bitcoin and ether remains close to yearly lows, while the VIX is also near its 2026 lows. This contrasts with rising volatility in the bond market, leading some observers to expect the gap to narrow. Low implied volatility also leaves options relatively inexpensive for traders seeking protection.

Bitcoin options continue to favor calls: On Deribit, bitcoin call options with strikes above $80,000 continued to account for a large share of 24-hour trading volume. Skews remained broadly neutral despite continued optimism over further gains. Ether options showed a similar setup.

Token Moves

Ethereum Layer-2 tokens were among the biggest losers in the CoinDesk 100 after CoinDesk reported that Pudgy Penguins’ Abstract had become the second Layer-2 network to shut down within a week.

Optimism fell 10% over 24 hours, the weakest performer in the index. Mantle declined nearly 10%, while Arbitrum dropped about 7%. PENGU, the token associated with Abstract’s parent project, fell more than 7%.

Solana held up relatively well among major cryptocurrencies, losing about 1% over 24 hours, although several tokens operating on its network suffered steeper declines. Jito fell nearly 8%, while Jupiter dropped 6%.

Cardano’s ADA declined 7.5% over 24 hours to around 26 cents. The drop came after ADA reached a high above 27 cents Monday, its strongest level since May. The decline followed news that Cardano now allows token issuers to freeze, seize and restrict assets.

Uniswap dropped nearly 9%, while Lido fell 8%. PancakeSwap and Pendle each declined close to 8%.

SAND moved against the broader market for the second time in a week, climbing 9% over 24 hours to lead the CoinDesk 100. The token had previously gained 37% on Oct. 2. STX rose 4%, while Monero gained about 1%, making them among the few major cryptocurrencies to remain in positive territory.

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