The cryptocurrency market experienced its largest correction in several years in October 2025. According to analysts at CryptoQuant, the effects of this event may influence market dynamics for several months to come.
This is reported by Business • Media
Sharp Decline in Open Interest and Shift in Trader Sentiment
Open interest in Bitcoin fell from $47 billion to $35 billion, marking one of the most significant reductions in recent times. This indicates a mass exit of traders from leveraged positions. At the same time, during the market capitulation on the night of October 11, the funding rate briefly turned negative but later stabilized at a moderately positive level. This signals a partial recovery of optimism among market participants.
“The recent capitulation has effectively reset leveraged positioning across the board. Historically, such large-scale deleveraging events have often preceded significant uptrends in the long term.” – CryptoQuant
Additionally, analysts noted a significant decrease in the leverage ratio (ELR), demonstrating a sharp reduction in the use of leverage in the derivatives market. The indicator fell to levels last seen in 2022, highlighting the caution of trading participants.
Other Key Market Indicators
The market exhaustion is also confirmed by the decline in the SSR (Stablecoin Supply Ratio) index, which compares Bitcoin’s market capitalization to the total capitalization of stablecoins. According to recent data, the index has reached its lowest level since April, which may indicate an increase in purchasing power in the market.
Research from Coin360 also confirms that funding has fallen to levels last observed during the market crash in 2022. Experts emphasize the importance of discipline for capital recovery:
“Capital can be recovered, but only if discipline comes first.”