- Over $1.09B in crypto liquidations occurred in 24 hours.
- XRP faced heavy long-side liquidation, reflecting overleveraged longs.
- Analysts link the crash to derivative expiries and market-maker resets.
- Despite the sell-off, experts predict a short-term recovery once uncertainty clears.
Software engineer and crypto commentator Vincent Van Code described the recent crypto market plunge as an “absolute XRP and crypto bloodbath”, following a sharp downturn that saw billions of dollars in leveraged positions wiped out.
Despite the steep decline, 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.”
Over $1 Billion in Crypto Positions Liquidated in 24 Hours
According to data from liquidation tracking platforms, over $1.09 billion in crypto long and short positions were liquidated within 24 hours, with 238,398 traders affected. The largest single liquidation, worth $21.43 million, occurred on Hyperliquid-BTC.
Also Read: XRP ETF Approval Coming Soonest? Here’s the Latest
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
Out of the total, $984.79 million came from long positions, indicating that bullish traders were hit hardest as the market reversed. XRP was among the most affected altcoins, with notable long-side liquidations, as shown in a chart shared by market analyst Peterb.
Opportunistic Liquidation Before Derivatives Expiry
In response to Vincent’s post, crypto trader Peterb offered a more technical explanation for the downturn, calling it a strategic reset by market makers ahead of a major 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 highlights a significant cluster of long liquidations, followed by a sharp rebound in trading volume, implying forced sell-offs and potential accumulation zones for institutional traders.
Market Outlook: Short-Term Fear, Long-Term Opportunity?
While the sudden downturn triggered panic across retail investors, analysts like Vincent and Peterb agree that the broader bullish structure remains intact. Vincent emphasized that such pullbacks are common during macro shifts and often precede strong recoveries once leveraged positions are flushed out.
Meanwhile, data from liquidation maps indicate that long liquidations have now significantly outpaced shorts, potentially setting the stage for a relief rally in the coming weeks.
As the market stabilizes, traders are watching closely whether XRP, which saw heavy liquidation pressure, can regain its footing, or if more volatility lies ahead as the derivatives expiry date approaches.
Also Read: Unichain Expands Reach With Support for Dogecoin, XRP, and Zcash
