Darkfost
Global Sell Off : -8% Gold, -12% Silver, -5% BTC, while Binance Open Interest back up to Pre-October 10 Levels
In a context where gold recorded a sudden correction of around 8% and silver roughly 12%, Bitcoin experienced a more moderate pullback of about 5%. This move occurred as part of a broader market sell off, with neither the S&P 500 nor the Nasdaq being spared. The decline was notably triggered by announcements from Microsoft, particularly those related to its investments in artificial intelligence, which led to a drop of more than 12% in its stock and caused a domino effect across global markets. This relatively mild correction in Bitcoin was nonetheless sufficient to trigger nearly $300M in long position liquidations within just a few hours. Hyperliquid accounted for the largest share of these liquidations, with $87.1M in long positions wiped out. In contrast, Binance, despite being known for having some of the highest trading volumes in the market, recorded roughly three times less, at around $30M. This highlights that many investors continue to seek market exposure through high leverage, generating sudden bursts of volatility that are often amplified by liquidation cascades. This appetite for risk remains clearly present, despite the October 10 event, which had previously resulted in a massive destruction of liquidity and capital across the market. To illustrate this behavior, one simply needs to look at the current open interest on Binance. It is expressed not in notional value, but in BTC terms, in order to neutralize the impact of price fluctuations that affect notional open interest. This method allows for a more accurate assessment of the underlying trend in investor exposure. At 123,500 BTC, open interest on Binance has already surpassed the level observed the day before the October 10 event. At that time, open interest had dropped to 93,600 BTC. This represents an increase of roughly 31% since then, gradually reflecting the return of risk appetite among investors.