On Tuesday, October 27th, the cryptocurrency market was witnessing a buildup of aggressive short positions. The spot price of Bitcoin declined within a narrow range around $79,756.00, while the aggregate number of open contracts ( Open Interest ) accelerated in growth, approaching $28.18 billion.
Maartunn of CryptoQuant points out that this is a typical bearish divergence – futures contracts are opened when the spot price is falling, indicating that a large number of shorts are entering the market and preparing for a forced liquidation of positions in either direction.
BTC The market dominance rate remains steady at 60.06%, with funds shifting from altcoins to Bitcoin. Ethereum has fallen to $2,311.16, and traders quickly moved their funds into stablecoins such as USDT and USDC before the opening of U.S. exchanges.
According to the summary displayed by CoinGlass, in the past 24 hours, there were 66,287 forced liquidations in the market, amounting to 140.79 million US dollars, with 56.9% of the losses coming from long positions. BTC futures (31.82 million US dollars) and ETH futures (24.06 million US dollars) led in terms of the amount of forced liquidations.
At the same time, there is a large-scale withdrawal of coins from exchanges in the spot market. A "whale" that had been quiet for 5 months transferred 11,330 BTC (approximately $903 million) from Binance to two new cold wallet addresses. This directly removes the supply from the exchange order book. On-chain indicators for Glassnode also confirm this: the proportion of short-term holders ( STH) who are in a profitable state has dropped to a healthy 70%, and the previous overbought condition has been completely eliminated.
In this context, Coinbase CEO Brian Armstrong reminded that while laboratories have learned to synthesize gold, the hard-coded limit of 21 million bitcoins cannot be changed. The short-term sideways movement in the market is due to investors waiting for U.S. macroeconomic data, while in the real-world assets ( RWA ) tokenization sector, there is intense competition for liquidity.
Behind tokenization: Hyperliquid closely pursues XRP Ledger in the battle for stablecoins
The competition for control over the infrastructure of RWA has entered a high-speed phase. According to data cited by RWA Foundation from Token Terminal, in the past 24 hours, the three major blockchain ecosystems have attracted a net inflow of 99.6 million US dollars in stablecoins, which will be immediately used to support new tokenization platforms.
Daily traffic data shows that the decentralized protocol Hyperliquid has actually caught up with Ripple.
- XRP Ledger ( XRPL ): Continuing to lead with a daily inflow of +34.4 million US dollars.
- Hyperliquid ( HyperEVM ): An increase of +34.1 million US dollars was recorded, narrowing the gap to a symbolic 300,000 US dollars.
- Arc: Ranked third with $31.1 million.
Venture capital is allocating resources between XRPL and Hyperliquid, but this newcomer's aggressive expansion also makes its margin market highly risky. Nevertheless, the slight gap between the two networks means that the leader in the RWA domain could change at any time.
A typical sign is that the largest forced liquidation in the entire market on that day—a BTC short position worth 1.85 million US dollars—occurred precisely on Hyperliquid.
The Federal Reserve Board of the United States ( OCC ) has approved the official launch of Ripple National Trust Bank ( RNTB ). This regulated bank has a clear mandate: to manage the reserves of RLUSD stablecoins and to provide custody services for corporate clients. This gives XRP Ledger a significant legal advantage over its unregulated competitors in the DeFi sector.
Ripple is also expanding its cooperation with BNY in terms of custody and tokenized trade financing, bringing trade financing into XRP Ledger. This collaboration combines the institutional scale of BNY with RLUSD's stablecoins, XRP, and XRP Ledger, further strengthening the network's position in the RWA infrastructure competition.
Ripple posted on platform X, stating: "Trade financing is coming to XRP Ledger! Today, we are expanding our cooperation with @BNYglobal in the areas of trade financing hosting and tokenization, combining the institutional scale of BNY with $RLUSD, @XRP, and XRP Ledger."
At the same time, Kraken exchange is launching the first batch of perpetual contract markets supervised by CFTC for American customers, which are directly built on top of Hyperliquid. The Payward project involves the Bitnomial platform as well as the clearing services of NinjaTrader. This integration has been made possible thanks to the large-capital compliance on-chain whitelist introduced with the HIP-3 upgrade. Against this backdrop, the HYPE token responded rapidly, rising to $78.50.
At the same time, US regulatory authorities are also adjusting their supervisory policies. According to Eleanor Terrett, the Commodity Futures Trading Commission (CFTC) of the United States will focus on the rules regarding the use of artificial intelligence in algorithmic trading this week.
"The Wall of Fear": Where might Bitcoin go after the Fed meeting?
While Bitcoin was building momentum within a sideways range, the XRP futures market underwent a round of severe cleansing (a sign of deleveraging). The number of open contracts on Binance decreased by 28% from their autumn highs, to $445 million, falling below the 180-day moving average. A local 17% price drop, accompanied by a series of margin calls, completely eliminated the leverage of retail speculators.
Historically, this indicator has usually been a sign of upward movement: in August, a similar market cleansing event drove XRP up by 72%; in September, it caused it to rise by 32%. If the token remains stable above $1.30, it is laying the foundation for a technical rebound.
Venture capitalist Chris Burniske pointed out that long-term participants are now actively buying into undervalued niche sectors. The medium-term trend of Bitcoin and the entire market will be completely determined by the U.S. macroeconomic report at the end of October.
This week's macroeconomic agenda of interest to investors includes:
- FOMC Meeting: The Fed's interest rate decision will affect the liquidity of the risky asset market.
- Preliminary U.S. Third Quarter GDP: This data will reveal the true resilience of the U.S. economy and adjust the fund's expectations.
- PCE Inflation Index (Core PCE): The Federal Reserve's core inflation indicator will be released simultaneously with initial jobless claims data, which usually triggers intense volatility in the futures market.
- Chicago PMI Index: The final indicators of commercial activity in the industrial sector will conclude this week, completing the position setting of major participants.
Bitcoin trend scenario ($79,500 to $80,000):
- Bullish scenario (US$82,500 to US$85,000): If the psychological barrier of US$80,000 is successfully broken through. Driving factors include: dovish rhetoric from the Federal Reserve, PCE declining inflation, a shortage in spot supply after large whales withdrew $903 million, and the selling pressure zone for STH holders being absorbed.
- Bearish scenario ($76,500 to $75,000): If the local support level of $79,000 is breached, it could trigger a new round of forced liquidations of long positions, due to tough and hawkish statements from U.S. regulatory authorities.
Before the release of key data, the market was in a state of tension. The margin bubble in XRP futures has been cleared, the selling pressure area for Bitcoin has dropped to 70% according to Glassnode data, and funds have been systematically transferred to cold wallets. All these factors are paving the way for the next phase of market movement.
Against the backdrop of a slight decline in the BTC spot price, the growth in open contracts indicates that the market is undergoing a critical "spring compression" before breaking out of the range. The ultimate triggering factor will be a report from the United States, and whether Bitcoin can hold above $80,000 will become a signal for the initiation of a directional trend.
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