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Bitcoin rebounds to $114k as crypto market shows recovery
Bitcoin and Ethereum rebounded over the weekend after a major sell-off on October 10, led to record liquidations across the cryptocurrency market.
Bitcoin rose 3% in the past 24 hours to US$114,700 as of 12:45 a.m. ET October 13, recovering from a drop below US$105,000 on October 10, according to The Block.
Ethereum climbed 8.5% to US$4,100 after it had fallen to around US$3,500.
Data from Coinglass showed that more than 1.6 million traders were liquidated on October 10, with total liquidations reaching US$19.1 billion.
Analysts cited the sell-off to macroeconomic factors, including new Chinese export controls on rare-earth materials and US plans for a 100% tariff on Chinese tech imports.
The price recovery was linked to the clearing of leveraged positions and stabilizing market conditions.
Investors are now watching upcoming US inflation data and Federal Reserve decisions for further cues on cryptocurrency market direction.
🔗 Source: The Block
🧠 Food for thought
Implications, context, and why it matters.
Weekend liquidity gaps amplify macro shocks in crypto markets
- A $19.1 billion liquidation hit during a thin weekend, when volumes drop and price swings rise, a structural weak spot versus markets with deeper order books.
- This bounce came from a leverage reset because perpetual futures funding rates 1 (periodic payments used to keep perpetual futures (no-expiry derivatives) aligned with spot prices) turn negative during cascades, then reverse as shorts close 1.
- Bitcoin’s 3% rebound to $114,738 stays within typical volatility, with the Mayer Multiple (price divided by its 200-day moving average) at 1.16 in early October, below the 2.4 overbought mark 2.
Institutional flow monitoring becomes essential risk management for crypto brokers
- Crypto trading firms should build real-time alerts to track U.S. spot Bitcoin plus Ethereum exchange-traded fund (ETF) net flows to spot real accumulation, with $197.8 million for Bitcoin and negative $8.7 million for Ethereum on October 9 2.
- Combine ETF flow data with perpetual futures funding rates 1 plus open interest levels (value of outstanding futures contracts) 3 to build a risk indicator. Trim client exposure when funding turns negative during weekends, which can set platforms apart, with combined Bitcoin and Ethereum ETF inflows above $18 billion in Q3 4.
- CoinDesk (API) 5 (a crypto data service), Coinglass 6 (a derivatives analytics site), and CryptoQuant 7 (an on-chain data provider) supply the inputs for these systems.
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