A sharp risk-off move hit crypto this week: sentiment plunged to “Extreme Fear,” Bitcoin (BTC) dipped below 92.328 € ($106,000) and briefly toward 90.500 € ($104,000), and over $1.3B in long and short positions were liquidated. Analysts now view 87.100 € ($100,000) as the key psychological level to hold, even as October (“Uptober”) ended red for the first time in seven years. Under the surface, activity rotated: BNB Chain saw a jump in transactions and memecoin launches, while stablecoins quietly crossed $300B in total market cap, signaling continued adoption.
Sentiment Plunges: “Extreme Fear” as BTC Slips Under 92.328 € ($106,000)
Crypto market psychology turned sharply lower after Bitcoin (BTC) fell under 92.328 € ($106,000) for the first time in weeks. The Crypto Fear & Greed Index dropped from the low 40s to 21/100 in a single day—its weakest reading in nearly seven months—before stabilizing near “Fear.” The sentiment swing followed a rapid intraday slide from ~95.000 € (~$109,000) to a 92.000 € ($105.500) daily low (and a brief dip below), with prices later recovering toward 92.500 € ($106,500).
Analysts connected the move to reduced institutional demand and softer on-chain activity in recent days, alongside lingering macro caution. The Federal Reserve held rates steady but indicated cuts might not arrive as quickly in 2025 as some hoped—pressuring risk assets and dampening speculative flows. Historically, such extreme sentiment readings often coincide with local “washouts,” but they can persist if macro headwinds linger.
👉 Beginner takeaway: The Fear & Greed Index is a quick proxy for mood. “Extreme Fear” often appears near short-term lows, but it doesn’t guarantee an immediate bounce. It simply means many traders are nervous—so stick to your plan and avoid emotional decisions.
$1.3B Liquidations: Derivatives Flush as BTC Tests 90.500 € ($104,000)
As spot prices slid, derivatives amplified the move. Across major venues, more than $1.3B was liquidated in 24 hours, with roughly $1.21B from longs as over-leveraged positions got wiped out. The single largest liquidation reportedly hit HTX (~$48M BTC-USDT long). At the same time, open interest in Bitcoin futures fell by ~9%, a sign that leverage came out of the system.
This dynamic—falling price, surging liquidations, and declining open interest—often marks a de-risking phase. In prior cycles, such cleansing events have preceded periods of consolidation and, sometimes, recoveries once sellers exhaust. Near term, traders are watching for lower-highs/lower-lows sequences on daily charts and how quickly OI rebuilds (or not) as volatility cools.
👉 Beginner takeaway: Liquidations happen when leveraged trades get auto-closed. A big liquidation spike usually means too much leverage got washed out. Markets can stabilize after that—but patience is key while volatility resets.
All Eyes on 87.100 € ($100,000): “Last Line of Defense” for Bulls
Multiple traders flagged 87.100 € ($100,000) as the level to defend. After losing the 93.000 € – 91.500 € ($107,000 – $105,000) area intra-day, some analyses framed the path as binary: reclaim and hold back above $105K–$107K to avoid momentum deterioration, or risk a deeper test into the five-figure handle. Several trading desks shared plans to watch daily closes relative to last week’s lows and to the $105K region; a decisive loss could open room toward 87.100 € ($100,000) with stops accelerating the move.
The opposite scenario is also straightforward: maintain closes back above 91.500 € – 93.000 € ($105,000 – $107,000), absorb supply, and attempt a push into the low 97.500 € ($112,000) to negate the breakdown and re-target the 100.000 € ($115,000) resistance band. With leverage compressed, spot demand (or lack thereof) will likely decide which path wins first.
👉 Beginner takeaway: Round numbers like 87.100 € ($100,000) matter because many orders cluster there. If price holds above a widely watched support, confidence can return. If it breaks, more selling can trigger quickly. Watch daily closes, not just intraday spikes.
October Scorecard: BTC Red, BNB Chain Activity Pops
“Uptober” broke its seven-year green streak: Bitcoin closed October down ~10%, hurt by the mid-month liquidation cascade, tariff headlines, and a late-month retest of support. Under the hood, BNB Chain had a different month. On-chain data showed transactions up ~135% in October amid a memecoin burst. Nansen and community analysts noted a pattern: retail chased early pumps, while large holders (“smart money”) sold strength; by late October, most hype-driven tokens retraced.
Even so, BNB itself managed a monthly gain of ~6–7% from its October lows after an early spike above 1.220 € ($1,300) faded. The takeaway: while Bitcoin set the macro tone, sector rotations persisted—some chains and narratives (memes, microcaps) were active despite broader caution.
👉 Beginner takeaway: Even when Bitcoin is weak, certain networks or themes (like memecoins) can be busy. Just remember activity ≠ quality—high on-chain action can be speculative and volatile. Manage risk and avoid chasing hype.
Quiet Strength: Stablecoins Surpass $300B Market Cap
Away from the noise, stablecoins crossed a new milestone: $300B total market cap. Growth came with an uptick in real-world integrations and infrastructure:
- The EURAU euro-backed stablecoin (a Deutsche Bank & DWS-linked project) expanded to multiple blockchains.
- Revolut rolled out 1:1 conversion between dollars and stablecoins for customers.
- Indonesia’s central bank is reportedly exploring a national stablecoin backed by government bonds.
- Visa highlighted support for four stablecoins across multiple chains to broaden acceptance and settlement.
Rising stablecoin supply often reflects improving liquidity—more “dry powder” that can move into assets when conditions turn—and broader adoption as payment and settlement rails evolve.
👉 Beginner takeaway: Stablecoins are the “cash layer” of crypto. When their market cap grows, it often means more liquidity and easier movement between exchanges and apps—useful for both traders and everyday payments.
Closing Thoughts
The market shifted from complacency to caution in days: Extreme Fear, a leverage flush, and a clear focus on 87.100 € ($100,000) as the level to hold. Seasonality didn’t help—Uptober finished red—but activity rotated to BNB Chain, and stablecoin adoption notched a fresh high. In the very short term, watch daily closes around 91.500 € – 93.000 € ($105,000 – $107,000) and the behavior of open interest; over the medium term, liquidity trends in stablecoins and macro signals will likely set the tone.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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