Gate on-chain observation ( on October 11, ): Whale shorting made a profit of 100 million dollars; "Maji Brother" Huang Licheng went long and lost 55.1 million dollars.

In the past 24 hours, the crypto market has experienced a sharp decline, with BTC briefly falling below $102,000 and ETH dropping to the $3,400 range. On-chain long positions encountered collective liquidation, while some whales managed to turn around their short orders for profit-taking. Institutional funds seized the opportunity to buy the dip on ETH, creating a pattern of "massive liquidations + buy orders coexisting" on-chain. Below are the main on-chain dynamics from October 10 to October 11:

BTC Market Dynamics

· The top four traders on Hyperliquid were liquidated due to the market crash, each losing over $10 million, with the address 0x1a67 losing $18.73 million and the account being wiped out.

· "The Whale that has shorted BTC four times since March" has finally turned the tables after holding the position for seven months, with BTC hitting a low of $102,000, resulting in a 24-hour profit of $26.52 million. They have nearly 40% take profit and still hold 1,300 BTC (approximately $144 million).

· The address marked as "BTC OG Whale" took profit of 91 million USD from short orders on BTC, SOL, and ETH during the fall, and then reopened short positions on BTC and SOL around 184 USD, gaining another 9 million USD within the day.

· Another BTC OG sub-address took profit by closing the position on a short line and replenished 84 BTC and 64,000 SOL, with a total holding of approximately 21.78 million USD.

Analysis: The BTC market has experienced extreme volatility, with whales collectively taking profit on their short positions, indicating a short-term bearish sentiment in the market. The frequent flow of ancient chips suggests that some long-term holders are realizing profits during this downturn, but at the same time, some whales are reopening positions, which still poses a high risk of short-term volatility.

ETH Market Dynamics

· A certain Whale address purchased 14,165 ETH (approximately 55.5 million USD) through over-the-counter channels (FalconX, Wintermute).

· Additionally, a new wallet has withdrawn 24,409 ETH (93.18 million USD) from CEX; the Whale address 0xedf has increased its holdings to 28,933 ETH (110 million USD).

The "7 Siblings" institution, which has frequently bought the dip after significant falls, borrowed 40 million USDC from Aave and spent 5 million USDC in a short period to purchase 1,326 ETH (average price of 3,771 USD).

· Two hacker addresses panic-sold 5,480 ETH (loss of 3.7 million USD).

· Abraxas Capital main address (0x5b5d) and sub-address (0xb83) shorting ETH, Aster and other long positions, with a total holding of 1.07 billion USD and a daily profit of 197 million USD.

Analysis: The ETH market has been quickly absorbed by institutions during the sharp fall, with multiple OTC channels indicating that funds are building positions at low levels. Abraxas Capital took profit on their short position and then quickly replenished, showing that high-frequency quantitative funds are re-establishing positions at low levels. The long-term demand for ETH remains strong.

On-chain Liquidation and Settlement Dynamics

· Hyperliquid four traders Get Liquidated with a total loss of 64.57 million USD, becoming one of the most severe Get Liquidated events in market history in a single day.

· Whale address 0xddf7 and 0xee7c. Due to long positions in Aave for cbBTC, they were liquidated for 14.4 million USD and 9.5 million USD, respectively.

· The long positions of ETH representative "Big Brother Ma Ji" Huang Li Cheng have been liquidated, turning from a floating profit of 44.5 million USD to a loss of 55.1 million USD within 22 days.

Analysis: This sharp decline triggered a chain liquidation, with concentrated leveraged positions getting liquidated, further amplifying the market's downward movement. The exit of high-leverage funds temporarily cleansed the market structure, which helps in forming a phase bottom.

Institutions and Whale Movements

· "High-profile whale switching holdings from ETH to BTC" increased short positions on BTC and ETH yesterday, with a total scale of 1.1 billion dollars, and has already made a profit of 78.56 million dollars today, of which the main address closed positions to take profit of 72.31 million dollars.

· Vitalik will transfer the 6.3 million STRK (1.09 million USD) he received to the Methuselah Foundation, continuing his charitable donation efforts.

· WLFI official bought 55.687 million WLFI (10 million USD1) at an average price of 0.18 USD in the early morning, but the market fell sharply an hour later, and the current price is 0.12 USD, with an unrealized loss of 30%.

· Chainlink non-circulating wallet unlocked 18.75 million LINK (387 million USD) and transferred to CEX.

· A contract Whale closed short orders of BTC and ETH at the lowest point, making a profit of 21.82 million USD.

Analysis: The differentiation between institutions and top funds is明显 in extreme market conditions: some funds are buying the dip at low levels, while others are locking in profits and exiting. Tokens such as ETH, LINK, and WLFI have become the focus, indicating that funds are reallocating to mainstream assets after seeking refuge.

Market Overview and Trend Analysis

The on-chain data from the past 24 hours reveals two main characteristics of this round of decline: short order profit-taking and institutional buy the dip coexist. The drastic fluctuations of BTC and ETH have led to a significant reallocation of funds between long positions and short positions, with leveraged funds being forcibly liquidated, while low-risk funds seize the opportunity to enter the market.

From the perspective of capital flows, the liquidation wave on platforms like Hyperliquid and Aave has caused a sharp decline in short-term market liquidity. However, at the same time, the large withdrawals from several institutional addresses and over-the-counter channels indicate that some long-term capital is viewing this round of decline as an entry opportunity. Especially with ETH, several transactions involving hundreds of millions of dollars have been made through channels like FalconX, showing that mainstream institutions are actively absorbing liquidity.

On the other hand, the ancient whales in the BTC market exhibit a more strategic trading pattern—collectively taking profit on short orders when the price dipped to $102,000 and quickly replenishing part of their positions. This indicates that large holders tend to adopt a "quick take profit + incremental rebuilding" strategy when dealing with extreme market conditions to hedge against short-term risks and capture potential rebound opportunities.

It is worth noting that quantitative institutions such as Abraxas Capital are simultaneously shorting and covering positions on ETH and long positions in DeFi tokens, suggesting that a funding game at the market bottom is forming. Although short-term fluctuations remain severe, on-chain funding behavior shows that the market structure is undergoing a healthy deleveraging correction.

In terms of medium-term trends, if BTC stabilizes above $100,000 and ETH maintains support at $3,400, market sentiment is expected to gradually recover. Mainstream assets represented by ETH, LINK, and WLFI may warm up first, while the capital inflow speed of high-risk small-cap tokens may be significantly delayed.

Overall, the current market is in a "high volatility, low liquidity, institutional accumulation phase". Short-term double bottoms may still appear, but from the perspective of on-chain capital activity and institutional buying power, this round of decline seems more like a main force reallocation and panic washout stage. After market sentiment is repaired, BTC and ETH are still expected to start a new round of rebound cycle in the fourth quarter.

Conclusion

Extreme market conditions are reshaping the market structure, with leveraged liquidations releasing potential selling pressure, while institutional buy the dip and Whale replenishment have become new incremental signals. Short-term volatility has not yet ended, but in the medium to long term, mainstream capital is completing "chip redistribution" with greater efficiency, laying the foundation for the next stage of market rebound.