Bitcoin isn’t topped. It’s resetting.
October’s $20B liquidation event was one of the largest in crypto history, but it didn’t end the cycle, it cleared leverage.
➣ $BTC price: $126K to $100K (-21%)
➣ Leveraged positions wiped: $20B
➣ M2 liquidity (global): flat since July
➣ U.S. net liquidity: negative post–debt ceiling
➣ Options positioning: $90K–$160K range
➣ Institutional outlook: bullish into 2026
The M2 decoupling isn’t bearish, it’s mechanical. Government borrowing drained liquidity temporarily, suppressing reflexive flows between liquidity growth and $BTC price.
Once tradable liquidity expands again, correlation should resume.
October’s flush was not a top. It was a reset. The base layer for the next impulse.
That’s how every Bitcoin cycle breathes before it breaks higher.