Bybit Traders Face Significant Liquidations as Bitcoin Retreats From Record Highs
The cryptocurrency market witnessed a dramatic reversal on October 12, 2025, as Bitcoin's sudden pullback from its recent record highs triggered massive long liquidations totaling $159 million within just one hour. This sharp downturn affected approximately 114,915 traders across major exchanges including Bybit, marking the highest level of forced position closures witnessed in the past week. Bitcoin, which had briefly surpassed the $125,000 milestone, retreated below $122,000 during early U.S. trading hours, signaling a significant market correction. Ethereum and other major altcoins mirrored Bitcoin's downward trajectory, amplifying the liquidation cascade across derivative platforms. This event serves as a stark reminder of the inherent volatility in cryptocurrency markets and underscores the importance of robust risk management strategies for traders utilizing leverage on platforms like Bybit. The rapid liquidation event highlights how quickly market conditions can change, even during bullish trends, and emphasizes the need for traders to maintain appropriate margin levels and implement stop-loss mechanisms to protect their positions against sudden price reversals.
Crypto Market Sees $159M Long Liquidations as Bitcoin Retreats From Record Highs
The cryptocurrency market experienced a sharp reversal as Bitcoin's pullback triggered $159 million in long liquidations within a single hour. Approximately 114,915 traders faced liquidations during the downturn, marking the highest level of forced position closures in the past week.
Bitcoin fell below $122,000 during early U.S. trading hours, relinquishing its brief hold above $125,000. ethereum mirrored the decline, dropping from $4,600 to $4,494.38. The second-largest cryptocurrency led liquidation volumes with $53.89 million in hourly liquidations, followed by Bitcoin at $39.70 million.
Bybit accounted for over 91% of all liquidated positions, totaling $90.10 million. The exchange became the epicenter of the liquidation event as Leveraged positions unwound rapidly. Market-wide open interest for Bitcoin reset to $43.2 billion after peaking at $45.8 billion, though the correction remains modest compared to September's $2.29 billion liquidation event.
Uptober Altcoin Season Drives Gains in Zcash, Mantle, and SPX6900
Liquidity is flooding into select altcoins during the so-called 'Uptober' rally, with Zcash, Mantle, and SPX6900 emerging as standout performers. Market moves remain concentrated rather than broad-based, as traders focus on tokens demonstrating clear catalysts—whether through technical breakouts, exchange listings, or fundamental utility.
Mantle Defies Market Downturn with 31% Weekly Surge Driven by RWA Adoption and Strategic Partnerships
Mantle (MNT) has surged 31% weekly to $2.44, defying broader market weakness. The LAYER 2 network hit a record high of $2.47 on October 7, fueled by institutional-grade real-world asset (RWA) infrastructure and a key stablecoin partnership.
At Token2049, Mantle unveiled a compliance-focused RWA tokenization platform, positioning itself as a leader in institutional blockchain adoption. The ecosystem gained further credibility with World Liberty Financial's decision to launch its $2.6 billion market cap stablecoin on the network.
Trading activity confirms organic demand. Spot volumes exploded from $125 million in early September to $612 million, while open interest in derivatives ROSE 26% to $4.85 billion. The technical setup mirrors fundamentals - MNT's price action invalidated a bearish pattern while forming a golden cross between its 50-day and 200-day moving averages.
$75 Billion in Illicit Crypto Holdings Identified by Chainalysis
Chainalysis reports a staggering $75 billion in illicit cryptocurrency remains dormant across blockchain networks. The blockchain analytics firm has already facilitated the seizure of $12.6 billion through global law enforcement collaborations, uncovering an even larger reservoir of criminal assets.
Criminal wallets currently hold nearly $15 billion in Bitcoin, Ethereum, and stablecoins—a 359% increase since 2020. Stolen funds dominate these holdings, with hackers demonstrating markedly different behavior than darknet vendors. The 2021 Bybit hack's $1.5 billion remains largely immobilized, illustrating the challenges of laundering large-scale crypto thefts.
Market cycles dramatically influence criminal portfolio values. Illicit holdings peaked during 2021's bull market, collapsed in 2022's crypto winter, then resurged amid 2024-2025's election-fueled rally. Ethereum and stablecoins now claim growing shares of criminal balances, though Bitcoin maintains dominance.
ByBit Becomes First Licensed Crypto Exchange in UAE
ByBit has secured a landmark achievement as the first cryptocurrency exchange to receive a full Virtual Asset Platform Operator License from the UAE Securities and Commodities Authority. The approval enables regulated trading, custody, and fiat services in a jurisdiction rapidly emerging as a global crypto hub.
"This license reflects our institutional-grade compliance framework," said CEO Ben Zhou, highlighting the exchange's expansion strategy following recent MiCA authorization in Europe and its India relaunch. The SCA endorsement signals growing regulatory clarity for digital assets in the Middle East.
Bybit Secures Full UAE Crypto License from SCA, First Exchange to Achieve Milestone
Bybit has become the first cryptocurrency exchange to obtain a full VIRTUAL Asset Platform Operator License from the UAE's Securities and Commodities Authority (SCA). The license permits Bybit to offer regulated trading, brokerage, custody, and fiat conversion services to retail and institutional clients across the UAE mainland, including areas outside Dubai's VARA jurisdiction.
"Receiving the full Virtual Asset Platform Operator License from the SCA is a testament to Bybit’s unwavering commitment to building trust through compliance and transparency," said Ben Zhou, Co-founder and CEO of Bybit. The UAE continues to solidify its position as a global leader in digital asset regulation.
Bybit plans to expand its regional presence with a new operations center in Abu Dhabi, aiming to employ over 500 staff across Abu Dhabi and Dubai. The exchange will focus on hiring local talent for compliance, operations, and customer service roles while collaborating with partners to develop Web3 education and innovation programs.
