The mass liquidations on October 10 prompted traders to reassess their risk strategies. They began shifting from derivatives to the spot market, writes CryptoQuant analyst known as Darkfost.
Spot Market Resurgence After the October 10 Event, Traders Return to Fundamentals
“Historically, market cycles have shown that phases of spot accumulation often precede structural recoveries.” – By @Darkfost_Coc pic.twitter.com/LXe0bamkPa
— CryptoQuant.com (@cryptoquant_com) October 22, 2025
The primary increase in activity was observed on the Binance exchange. In early September, daily spot trading volumes of Bitcoin on the platform were $3-5 billion, but after October 10, they stabilized in the $5-10 billion range. According to the analyst, the cumulative figure on the largest crypto exchange reached $180 trillion.
The analyst believes this shift indicates more cautious investor behavior. Returning to the “home port” could lay the foundation for a sustainable recovery. Historically, phases of spot asset accumulation often precede structural market growth, he notes.
Impact of the Fed Rate
Participants anticipate that on October 29, the Fed will cut the key rate by 25 basis points. According to CME FedWatch, the new range will be 3.75-4%.
Bitget’s chief analyst Ryan Lee told ForkLog that the regulator’s policy easing will support the market.
“Under such conditions, a short-term rise in Bitcoin and Ethereum by 5-10% is possible, as well as a capital flow into major altcoins like SOL and XRP,” he believes.
Lee added that discussions on integrating stablecoins into the US financial system at the Payments Innovation Conference could accelerate institutional adoption of cryptocurrencies.
TECHNOBIT CEO Alexander Peresichan holds a different view. He believes the rate cut is already priced in. The Fed’s decision is “unlikely to reverse the bearish trend,” Peresichan explained.
The expert noted that investors are more focused on the US-China trade standoff. The risk of increased tariffs on goods from the “world’s workshop” from November could heighten inflation.
In such conditions, market participants are seeking safe-haven assets, preferring gold. Bitcoin’s high volatility of 5-7% indicates trader uncertainty, added the head of TECHNOBIT.
Despite this, he is optimistic about the market’s medium-term prospects. He suggests that a gradual Fed rate cut and the influx of institutional capital could renew interest in cryptocurrencies over the next three to six months.
Hodlers Sold 28,000 BTC
Bitcoin reserves of long-term holders (LTH) decreased by 28,000 BTC since October 15, according to Glassnode analysts.
According to their data, hodlers sold more coins than they received due to the “aging” of assets from short-term investors. This indicates net distribution rather than passive accumulation.
The average daily sales volume from LTH is steadily increasing. In early July, the figure was about 12,500 BTC, and now it has reached 22,500 BTC per day.
This trend indicates increased sales from market veterans.
Meanwhile, experts at Lookonchain noted the activity of large players opening long positions.
Many whales are turning bullish and going long!
• 0x89AB deposited 9.6M $USDC to #Hyperliquid in the past 12 hours, bought 80.47 $BTC($8.7M), and opened a 6x long on 133.86 $BTC($14.47M).
• 0x3fce deposited 1.5M $USDC 6 hours ago and increased his $BTC long position to 459.82… pic.twitter.com/Y7jaiV7416
— Lookonchain (@lookonchain) October 22, 2025
One of them deposited 9.6 million USDC to the Hyperliquid exchange, bought 80.47 BTC, and opened a 6x long position on 133.86 BTC. Another whale topped up his account with 1.5 million USDC and increased his Bitcoin long to 459.82 BTC.
Another market participant brought in 4 million USDC to open long positions on BTC, ETH, and SOL. A fourth trader used 5.44 million USDC for a long on Ethereum.
Earlier, analyst PlanB stated that fundamental indicators suggest continued growth in the crypto market despite recent corrections.