Market Overview
Over $1.09 billion in cryptocurrency liquidations occurred within a 24-hour period, significantly impacting traders and market dynamics. XRP, in particular, experienced heavy long-side liquidation, signaling an overleveraged long position environment. Analysts suggest this market crash is linked to derivative expiries and a strategic reset by market makers.
Despite the recent sell-off, market experts anticipate a short-term recovery once the prevailing uncertainty clears. Software engineer and crypto commentator Vincent Van Code described the recent market plunge as an "absolute XRP and crypto bloodbath," following a sharp downturn that saw billions of dollars in leveraged positions wiped out.
Vincent downplayed the panic, suggesting that the drop was not driven by any major negative event. He pointed out that macroeconomic indicators, such as a Federal Reserve rate cut and easing of China tariffs, were actually positive signals.
"I never worry when price tanks like this without an event," Vincent wrote. "We had good news from the Fed and China, so what’s up with that? My take is it’s just uncertainty in the market. These prices will go back up, hopefully, in the next few weeks."
Massive Liquidations Across Crypto
According to data from liquidation tracking platforms, over $1.09 billion in crypto long and short positions were liquidated within 24 hours, affecting 238,398 traders. The largest single liquidation, valued at $21.43 million, occurred on Hyperliquid-BTC.
Out of the total liquidations, $984.79 million stemmed from long positions, indicating that bullish traders were most severely impacted as the market reversed. XRP was identified as one of the most affected altcoins, with substantial long-side liquidations, as depicted in a chart shared by market analyst Peterb.
It’s an absolute XRP and crypto bloodbath.
But I never worry when price tanks like this without an event. In fact we had good news of Fed rate cut and China tariffs, so what’s up with that?
My take is it’s just uncertainty in the market. These price will go back up hopefully…
— Vincent Van Code (@vincent_vancode) October 30, 2025
Strategic Market Reset Before Derivatives Expiry
Crypto trader Peterb offered a more technical explanation for the downturn, characterizing it as a strategic reset by market makers in anticipation of a significant derivatives expiration event.
"It’s just another day of opportunistic liquidation before $31B of derivatives are scheduled to expire," Peterb noted. "Market makers call it a ‘maximum pain’ position — reducing exposure prior to the date 10-32-25. Another mini reset before the next run up."
It’s just another day of opportunistic liquidation before 31B of derivatives are scheduled to expire. market makers call it maximum pain position, reducing exposure prior to the date 10-32-25. Another mini reset before the next run up pic.twitter.com/Izv7oMivoJ
— Peterb (@PeterBourg30061) October 31, 2025
Peterb’s accompanying liquidation chart highlighted a substantial cluster of long liquidations, followed by a sharp rebound in trading volume. This suggests forced sell-offs and potential accumulation zones for institutional traders.
Market Outlook: Short-Term Volatility, Long-Term Optimism
While the sudden downturn triggered panic among retail investors, analysts like Vincent and Peterb concur that the broader bullish market structure remains intact. Vincent emphasized that such pullbacks are common during macro shifts and often precede strong recoveries once leveraged positions are cleared.
Data from liquidation maps indicates that long liquidations have now significantly surpassed short liquidations, potentially setting the stage for a relief rally in the upcoming weeks.
As the market stabilizes, traders are closely observing whether XRP, which experienced heavy liquidation pressure, can regain its footing, or if further volatility is imminent as the derivatives expiry date approaches.