In October, the Bitcoin market confirmed its vitality despite a sharp price correction. Spot volume exceeded 300 billion dollars, a sign of a return to “cash” trading and a reduction in leverage usage. According to CryptoQuant, this dynamic reflects a healthier market, capable of withstanding volatility without a sudden collapse.
In Brief
- •In October, Bitcoin spot volume exceeded 300 billion dollars, despite a sharp price correction.
- •A significant liquidation of over 20 billion dollars in leveraged positions shifted activity to the spot market, leading to a healthier market structure with Binance playing a dominant role.
- •The market has become more resilient, characterized by spot accumulation, robust liquidity on major platforms, and disciplined risk management.
Bitcoin: A Volume Peak Despite the Setback
Although Bitcoin has declined, investors, both retail and institutional, are renewing their confidence in the spot market. This reflects a structural evolution of the market towards greater stability despite the peak reached in October.
Following this, a key figure is particularly noteworthy. Over 300 billion dollars in spot volume was recorded on exchange platforms. This is not a simple technical rebound but a real rush towards spot liquidity after a period of market tension.
Binance, for its part, leads the way. The exchange’s leadership in the spot market is confirmed during this consolidation phase. When conditions tighten, traders favor order book depth, execution speed, and competitive fees. Logically, the spot market then becomes the natural absorption area for price movements.
Yet, the context was far from favorable. BTC has fallen from its previous all-time high, but trading flow has not weakened. The result is that order books keep turning, spreads remain, and volatility is much less destructive than during upward cycles dominated by derivatives.
Spot Takes Over: Why It’s Healthy
At the beginning of the month, the sharp drop from the highs hit open interest hard. More than 20 billion dollars of long and short positions were liquidated, likely more when including chain effects. The market cut leverage, cleanly and harshly.
It was at this point the spot market took over. Traders unplugged leverage to refocus on cash purchases. This shift is not a simple technical adjustment. It reduces sensitivity to squeezes, limits liquidation cascades, and favors a more natural and healthier price discovery.
At the same time, the nature of participation evolves. Bitcoin spot flows attract both patient retail investors and institutions seeking transparency. The latter favor clear settlement-delivery over the artificial volatility of funding rates. In summary: less noise, more signal.
A spot-dominated market absorbs shocks better. Down phases still exist, but excesses correct faster. For a long-term Bitcoin investor, the environment is clearer. You buy network shares, not casino tokens.
The advantage goes to solid platforms. When volatility rises, turning to high-liquidity exchanges like Binance on the spot market becomes a competitive edge. Better execution, less slippage, and order book depth that smooths waves.