Bitcoin holds steady as the market resets after a massive leverage flush

  • The crypto market is stabilizing after a sharp correction and a massive leverage flush.
  • Analysts see the move as a healthy reset, not a structural breakdown.
  • While speculators were purged, institutional money continues to accumulate.

A fragile but significant calm has settled over the cryptocurrency market, as it begins the slow and painful process of healing from a brutal correction that has purged the speculative excess from the system.

Bitcoin is holding steady, a quiet resilience that analysts believe is not a sign of weakness, but of a market that has undergone a healthy and necessary reset.

As Asia begins its trading day, Bitcoin is hovering around $110,300 dollars, with Ethereum changing hands at $3,970.

This newfound stability comes after a sharp and violent sell-off that had pushed Bitcoin as low as 104,000 dollars just last week.

The great reset: A cleansing of speculative excess

The key to understanding the market’s current state is to see the recent crash not as a catastrophic failure, but as a violent and necessary cleansing. In a recent market note, the analytics firm Glassnode described the move as a “flush, not a failure.” 

The firm’s analysis shows that the speculative leverage that had been driving the market has been decisively unwound, futures open interest has fallen sharply, and traders have been realizing losses in a defensive normalization, not a full-blown capitulation.

This view is echoed by other market observers who see a similar dynamic playing out in the world of capital formation.

The market maker Enflux, in a note to CoinDesk, highlighted the news of Blockchain.com’s planned US SPAC listing as a “full-circle moment” for crypto exchanges, a sign that the industry is once again re-engaging with the public markets, but this time from a position of greater maturity.

The quiet accumulators: The giants beneath the surface

While the speculative layer of the market has been flushed out, a different and far more powerful story is unfolding beneath the surface.

While retail traders were being liquidated, the institutional giants were quietly buying the dip.

Enflux pointed to Tom Lee’s Bitmine allocating another $800 million to buy more ETH as an “infrastructure-scale commitment,” a clear and powerful sign that institutional money is not just staying, but is actively accumulating.

This is the great divergence that now defines the market: the short-term speculators have been purged, while the long-term capital is quietly and methodically rebuilding the foundation.

A new harmony in a chaotic world

This reset is also reshaping the very narrative that governs the market. As Enflux noted, gold’s continued and stunning strength—surging to a new record of $4,380.89 an ounce—is no longer seen as a threat to Bitcoin, but as a complementary signal.

It shows that in a world of deep macroeconomic and geopolitical uncertainty, digital assets now coexist with traditional hedges, a sign of a broader portfolio shift toward diversification, not abandonment.

The market may be wounded, but it is also wiser, and a new, more resilient foundation is quietly being laid.

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Injective news: 21Shares files for a new INJ ETF

  • 21Shares has filed for a new spot Injective (INJ) ETF with the US Securities and Exchange Commission.
  • The ETF issuer submitted the application on October 20, 2025, making Injective one of the altcoins with multiple ETF applications before the SEC.
  • INJ trades at $8.75 as cryptocurrencies look to bounce off recent lows amid ETF-fueled bullish sentiment.

21Shares, a leading issuer of cryptocurrency exchange-traded products, has submitted a new filing for a spot exchange-traded fund (ETF) to the US Securities and Exchange Commission.

The price of Injective’s native token INJ saw a slight uptick amid the development, with bulls holding above the $8.00 level.

21Shares files for a new injective spot ETF

Injective’s official X account shared news of 21Shares’ INJ ETF filing with SEC on Monday.

Per the filing, the proposed 21Shares Injective ETF aims to provide investors with direct exposure to INJ.

Like other proposed listings, and following in the inaugural launches of Bitcoin and Ethereum spot ETFs, the 21Shares Injective ETF is an exchange-traded fund that will hold physical INJ tokens in cold storage custody.

“This is a major signal of growing institutional interest, making $INJ one of the few digital assets with multiple ETF products in progress,” the Injective team posted on X.

Injective is one of the top 100 cryptocurrencies and its growth across the industry comes amid traction for sectors such as decentralized finance and real-world assets.

Recently, the layer-1 project held its inaugural meeting of the Injective Council.

The platform’s growing presence and adoption gets notable boost from industry leaders helping to champion key strategic roadmap goals, including native Ethereum Virtual Machine, digital asset treasury, INJ ETFs and pre-IPO markets.

Major partners include Google Cloud, T-Mobile, Deutsche Telekom, YZi Labs, Galaxy Digital and BitGo.

Previously Canary Capital had submitted for an INJ ETF in July.

Injective is a high-performance Layer 1 blockchain engineered for decentralized financial services (DeFi).

The platform is capable of processing more than 25,000 transactions per second and utilizes its native token, INJ, to secure the network via a delegated proof-of-stake (DPoS) consensus mechanism.

The blockchain tackles infrastructure challenges such as fragmented liquidity and slow transaction finality by integrating exchange primitives with CosmWasm-based composability, while Comet BFT (formerly Tendermint BFT) ensures fast finality.

INJ price outlook as ETF approval hype boosts sentiment

As noted, INJ traded near $8.75 amid broader crypto volatility.

While the token’s price did not explode amid the ETF news, enthusiasm is high across the market.

The upbeat outlook is mostly down to anticipation that the SEC is set to greenlight multiple crypto ETFs and current market downside pressure could dissipate to see bulls take over.

The Injective price is down from its December 2024 peak near $35 and well off the all-time high of $52.75 reached in March 2024.

However, bulls are looking to hold above $8.00 after dipping to around $7.80 following the dip on October 17, 2025.

Prior to this, INJ had shown resilience after bouncing off lows of $6.90 in April.

Apart from ETF-driven sentiment, treasury asset bets such as the $100 million move by Pineapple Financial, help bulls.

 

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Dogecoin jumps as Musk’s post revives market optimism

  • Dogecoin jumps 2.5% to $0.20 as Elon Musk’s new X post sparks renewed investor optimism.
  • DOGE forms bullish “Adam and Eve” pattern, signaling potential 25% upside toward $0.26.
  • Short squeeze setup may accelerate Dogecoin’s rally if price breaks above $0.216 neckline.

Dogecoin (DOGEUSD) climbed sharply on Monday after renewed social media buzz from Elon Musk reignited interest in the top memecoin.

The token gained 2.5% to $0.20, extending a two-week rally that has lifted prices by more than 55% from recent lows.

The move followed Musk’s latest post on X, featuring the Shiba Inu mascot synonymous with Dogecoin.

The tweet quickly went viral, prompting a 29% intraday surge in DOGE’s price as traders and retail investors flocked back to the token.

Dogecoin’s latest upswing underscores its continued sensitivity to Musk’s online activity.

The Tesla and SpaceX CEO has a long history of influencing DOGE’s trajectory, most notably during the 2021 rally that sent the token from a fraction of a cent to nearly $0.73.

With broader crypto market sentiment improving and technical indicators turning bullish, Dogecoin appears poised for further upside momentum through the second half of October.

Bullish double-bottom pattern suggests further upside

CoinTelegraph’s technical analysis points to a developing “Adam and Eve” double-bottom formation on Dogecoin’s chart — a classic bullish reversal pattern.

The structure features a sharp “V”-shaped dip (Adam) followed by a more rounded recovery phase (Eve), typically signaling that selling pressure is waning and buyers are regaining control.

DOGE’s neckline — the resistance level that confirms a breakout — sits near $0.216.

A successful close above this level could trigger a follow-through move toward $0.260, representing an upside potential of roughly 25% from current prices.

This price target aligns with the pattern’s measured move projection and coincides with a significant technical confluence zone.

It also matches the 0.382 Fibonacci retracement level on Dogecoin’s weekly chart, reinforcing the case for continued bullish momentum.

Adding to the optimism, DOGE has rebounded from a strong support confluence formed by an ascending trendline and the 0.236 Fibonacci level.

This confluence suggests that buyers are defending lower price levels effectively, providing a technical base for a potential rally toward $0.26 in the near term.

Short squeeze could accelerate Dogecoin rally

Market data from futures exchanges indicates a potential setup for a short squeeze — a scenario where bearish traders are forced to close their positions as prices rise, further driving the rally.

Futures positioning shows a dense cluster of short liquidation levels between $0.215 and $0.27, while long liquidation levels are relatively sparse below $0.18.

This asymmetry suggests that downside risk is limited, as there are fewer leveraged long positions that could trigger cascading sell-offs.

In contrast, the upper price range is packed with short positions that could be rapidly liquidated if Dogecoin breaks above the $0.216 neckline.

Such an event would likely amplify buying momentum as short traders are compelled to buy back into the market, potentially accelerating the move toward the $0.26 target.

Outlook: momentum builds ahead of key resistance

Dogecoin’s recent recovery highlights renewed speculative interest in memecoins as traders look for high-volatility opportunities amid a broader crypto rebound.

While the token remains highly sensitive to social media influence, technical signals point to improving structure and strong near-term support.

If DOGE confirms a breakout above $0.216, the path toward $0.26 could open quickly — a move supported by both bullish chart patterns and futures market positioning.

However, failure to sustain above key resistance levels may keep the token range-bound in the short term.

For now, Elon Musk’s latest post has once again reminded markets of Dogecoin’s unique blend of cultural influence, retail enthusiasm, and technical volatility — a mix that continues to make it one of the most closely watched assets in the cryptocurrency space.

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