Bitcoin and Ethereum rally after market crash

The crypto market is rebounding after one of its most turbulent weekends on record, with major digital assets regaining ground lost during the sudden wave of liquidations that wiped out about $20 billion from open positions.

According to Crypto Slates According to data, Bitcoin rose more than 3% in 24 hours to trade around $115,342 after falling towards $105,000 on October 10. Ethereum also rebounded strongly, rising 9% to $4,180 after falling to almost $3,500 over the weekend.

Among the top 10 digital assets, BNB led with a sharp jump of 16.85% to a new record, while Dogecoin and Cardano each gained more than 10%. Tron, on the other hand, only posted a modest gain of 2.5%, showing that the recovery remains uneven across the market.

More than $600 million liquidated

Despite the recovery in prices, the crypto market still saw nearly 190,000 traders liquidate in the past 24 hours, with total losses exceeding $626 million. Notably, the most significant liquidation involved a $7 million ETH-USD position on Binance.

According to CoinGlass factsShort sellers absorbed most of the damage, losing about $418 million as prices soared, while long traders lost another $207 million as volatility continued.

Still, Timothy Misir, head of research at BRN, explained CryptoSlate that the market recovery reflects a mix of short covering and selective accumulation.

According to him:

“Large investors are buying opportunistically, while many retail players remain sidelined. That said, the structural health of the market still depends on steady demand in the spot market, ETFs, government bonds and corporate purchases and the time for liquidity to normalize. A V-shaped recovery is possible; a sustained rally requires repeated absorption of selling at increasingly higher prices.”

Wear signals

Meanwhile, Nick Forster, the founder of options trading platform Derive.xyz, warned that volatility in Bitcoin and Ethereum options has increased following last week’s shocking market collapse.

He said this signals expectations of a volatile few weeks ahead as the recent sell-off has disrupted normal volatility patterns and traders have started hedging aggressively.

As a result, Forster noted that some investors are starting to tolerate the thought that Bitcoin could fall below $100,000, while ETH traders are more bearish, with “substantial purchases of $2,600 puts for December.”

He said:

“In BTC options, we saw heavy buying of $115,000 and $95,000 puts for the October 31 expiration, in addition to a sharp reversal from call buying to call selling at the $125,000 strike (October 17 expiration), indicating a bearish near-term outlook… For ETH, traders focused on the $4,000 strikes on October 31 and $3,6000 on 17 October, while purchasing substantial shares. $2,600 puts for expiration on December 26 reflected growing bearish sentiment through year-end.”

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