Bitcoin’s spot trading surged to over $300 billion in October, marking the second-highest total of the year. This surge follows a staggering $19 billion loss as many traders shifted from leveraged positions to safer spot markets.

Analyst Darkfost remarks that the Movement towards spot trading indicates a cooling in speculative activities, with a renewed focus on long-term investment strategies.

A Costly Lesson in Leverage

The most active exchange, Binance, reported $174 billion in BTC spot trades this month, showcasing its dominance in the market. Increased activities stem from both retail and institutional traders.

Following the largest liquidation event in cryptocurrency history on October 10, where over $19 billion in leveraged assets were lost, Bitcoin’s price fell significantly from $122,000 to as low as $101,000. This event forced around 1.6 million traders to sell their positions during the downturn.

The catalyst for the crash was a statement from U.S. President Donald Trump regarding potential tariffs on China, escalating geopolitical tensions and resulting in extreme liquidation on derivatives exchanges. Long-position traders faced the heaviest losses, totalling almost $17 billion.

Currently, Bitcoin is valued at $110,800, slightly down from 24 hours ago but showing a slight increase from a week prior. This week’s trading has been relatively stable, oscillating between $108,000 and $116,000, suggesting a potential easing of previous market volatility.

Navigating a New Market Reality

Despite this resurgence in spot trading, analysts warn that the current rebound might be delicate. Data from Santiment shows that retail traders are adopting a more optimistic outlook, eager to “buy the dip.” However, such sentiment often precedes further declines as true accumulation tends to occur in a pessimistic environment.

Market experts, including Ali Martinez, have raised caution flags about liquidity concerns despite a recent rate cut by the Federal Reserve. Notably, October’s pivot towards spot trading could signal a healthier market landscape, prioritizing genuine demand over reckless leveraging.

“A market driven more by spot trading rather than derivatives is generally healthier, more stable, as it is less vulnerable to extreme volatility,” noted Darkfost.

This transition may herald a new phase in crypto trading, focusing on stability and organic demand.