Core Viewpoint - The cryptocurrency market experienced a significant downturn due to threats of tariffs from former President Trump, marking the largest sell-off since at least early April 2023 [1] Market Impact - Bitcoin's price plummeted from a high of $122,000, with a maximum intraday drop of 13%, reaching a low of $103,900, resulting in one of the most severe single-day liquidation events in crypto history [2][4] - Ethereum's price fell from $4,363 to $3,468, a decline of over 20%, while many altcoins saw declines exceeding 30% [6] - The total liquidation amount reached $19.141 billion within 24 hours, with 1.6213 million investor accounts being forcibly liquidated, a figure three times higher than the LUNA crash in 2022 [4][10] Structural Issues - The market's structural weaknesses were exacerbated by high leverage, with average retail investor leverage at 10x, meaning a mere 10% drop in Bitcoin's price could trigger liquidations [16] - The total leverage ratio in the crypto market reached 38%, the highest since May 2022, indicating a precarious market condition [18] - The correlation between cryptocurrencies and the Nasdaq index has risen to 0.78, suggesting increased volatility due to institutional investor involvement, which has grown from 15% to 32% in Bitcoin holdings since 2022 [20] External Factors - Trump's tariff threats directly impacted risk asset confidence, with the WTO lowering global goods trade growth forecasts from 1.8% to 0.5% for 2026 [10] - The ongoing U.S. government shutdown has historically led to increased volatility in cryptocurrencies, often 3-5 times that of the S&P 500 index [12] - The Federal Reserve's ambiguous stance on monetary policy has dampened liquidity expectations, further straining the market [14]

Core Insights - The global cryptocurrency market experienced a severe sell-off on October 11, with Bitcoin's price dropping nearly 13% within hours, falling below $110,000 to a low of approximately $106,000, marking the largest single-day decline since April 2024 [1][4] Group 1: Market Impact - A record $19.141 billion was liquidated in the global derivatives market within 24 hours, with over $7 billion liquidated in less than an hour, affecting more than 1.62 million traders and leading to a significant drop in market liquidity and increased price volatility [3] - Bitcoin's price fell from $123,000 to about $106,000, representing a decline of approximately 13.5%, while Ethereum and other major altcoins also saw significant declines, with Ethereum dropping over 17% and smaller tokens like XRP and Dogecoin experiencing declines exceeding 30% [4][5] Group 2: Risk Factors - The liquidation event highlighted the high leverage risk in the cryptocurrency market, with around 90% of the liquidated accounts being long positions, indicating that most investors had increased leverage during price rises without effective risk hedging [5] - The market faced additional pressure from macroeconomic uncertainties, including potential trade tariffs and government shutdown risks in the U.S., which further weakened confidence in cryptocurrency assets [8] Group 3: Future Outlook - Analysts suggest that Bitcoin may continue to face significant volatility in the short term, especially if U.S. policy uncertainties persist or macroeconomic pressures increase; however, if market sentiment stabilizes and regulatory clarity improves, a technical rebound may occur [6] - Institutional investors are reportedly continuing to build long-term positions in Bitcoin, with some large funds buying at lower prices, which could provide support in the future [6]

Group 1 - The global cryptocurrency market experienced a massive sell-off, with Bitcoin dropping from $122,000 to a low of $101,500, marking a maximum decline of 17%. Other cryptocurrencies like Ethereum, Dogecoin, and SOL saw declines exceeding 20% [1] - In the past 24 hours, over $19 billion in cryptocurrency contracts were liquidated, affecting 1.62 million traders, with 90% of the liquidations being long positions. Binance faced temporary outages due to the market volatility, but services have since resumed [1] - Bitcoin's price has seen significant fluctuations this year, starting around $95,000 and reaching a historical high of over $126,250. The surge was attributed to increased investor interest in Bitcoin and gold amid the U.S. government shutdown [1] Group 2 - The cryptocurrency market was impacted by U.S. President Trump's threats regarding tariffs and the escalating government shutdown, which hindered the passage of a bill to end the shutdown [2] - The probability of a 25 basis point rate cut by the Federal Reserve in October is currently at 95%, with an 80% chance of another cut in December. The uncertainty surrounding the government shutdown has contributed to unclear inflation data, affecting the Fed's decision-making [2] - Market uncertainty has led to a significant drop in risk assets, with increased demand for downside protection in the derivatives market. The dynamics of the options market are now more influential on the underlying market prices than ever before [3]

Core Insights - The cryptocurrency market experienced a significant downturn, with Bitcoin dropping over 13% and falling below the $110,000 mark, currently priced at $113,700 per coin [1] - Smaller and less liquid tokens faced even greater declines, with Ethereum plummeting over 17% and both Ripple and Dogecoin dropping more than 30% [3] Market Performance - Bitcoin's market cap is approximately $2.26 trillion, with a 24-hour trading volume of about $128.19 billion [4] - Ethereum's price is around $3,903.84, with a market cap of approximately $471.21 billion and a 24-hour trading volume of $82.38 billion [4] - Other notable declines include BNB down 9.23%, XRP down 11.51%, and Cardano down 29.17% [4] Liquidation Events - The total liquidation across the cryptocurrency market reached $19.14 billion, marking the largest forced liquidation wave since early April, affecting 1.62 million traders [5] - Bitcoin accounted for $5.32 billion in liquidations, while Ethereum saw $4.38 billion [5] Market Dynamics - The recent volatility is attributed to market uncertainty, leading to increased demand for protective derivatives [5] - The price of Bitcoin has fluctuated significantly since early 2025, with a notable rise supported by institutional investments and its growing correlation with the global financial system [5] Future Projections - Deutsche Bank predicts that by 2030, Bitcoin and gold may become significant components of central bank reserve assets, as the share of dollar reserves declines [6] - Bitwise forecasts a price target of $1.3 million for Bitcoin by 2035, driven by institutional demand and limited supply, with an expected annual growth rate of 28.3% over the next decade [6]

Market Overview - The crypto market faced its largest liquidation event, resulting in leveraged bullish bets worth $16 billion being forced out across major cryptocurrencies like bitcoin, ether, and several altcoins, with some altcoins crashing between 20% to 40% [1] Recovery Process - The recovery following such a crash is expected to be gradual, testing the patience of bullish investors, as indicated by industry experts [2] - The initial phase involves the market "bleeding out," with liquidation orders flooding exchanges and pushing prices lower, leading to significant drops in altcoin values [2] - Market makers typically step back to manage risk during this phase, focusing on addressing price mismatches between spot and futures markets through arbitrage plays, which delays an immediate rebound [3] Data Stabilization - After a market crash, there is a phase where data feeds stabilize, allowing traders and market makers to rely on reliable information channels again, which may have experienced delays or outages during the crash [4] Absorption Phase - Once data feeds stabilize, market makers and large traders begin to absorb major sell orders to restore market equilibrium, capitalizing on liquidation orders that receive priority in order books [5] - Given the scale of forced liquidations, this absorption phase can take several days [5] Market Stabilization - The stabilization stage involves dealers and market makers closing out their long positions acquired at bargain prices while absorbing liquidation orders, aiming to profit from a potential market rebound [6] - As the market reaches equilibrium, dealers will start unwinding their positions, leading to a local maxima in prices for certain assets with tighter supply [6]

Group 1 - The cryptocurrency market experienced a significant decline due to threats of tariffs from Trump, marking the largest sell-off since at least early April of this year [1] - Bitcoin saw a daily drop of 13.5%, falling below the $110,000 mark to a low of $105,930, before narrowing its losses to around $113,000 later [1] - Smaller and less liquid tokens were hit harder, with Ethereum dropping over 17% and Ripple and Dogecoin plummeting more than 30% [1] Group 2 - Bitcoin reached a historical high of over $126,250 earlier in the week, driven by investor interest amid government shutdown concerns, leading to a "devaluation trade" in Bitcoin and gold [1] - The forced liquidation across the cryptocurrency market surged to $19.141 billion, marking the largest wave of forced liquidations since early April, affecting 1,621,284 individuals [2] - The largest single liquidation occurred on the Hyperliquid platform for the ETH-USDT trading pair, valued at $203 million [2] Group 3 - Bitcoin liquidations amounted to $5.317 billion, while Ethereum liquidations were $4.378 billion, with other notable liquidations including SOL at $1.995 billion and XRP at $0.699 billion [3] - CME Bitcoin futures fell by 5.94% to below $116,000, with a cumulative decline of 7.37% for the week [3] - CME Ethereum futures dropped 11.29% to $3,879, with a total weekly decline of 14.80% [3]

Market Reaction - Cryptocurrency prices experienced a significant decline, with Bitcoin falling below $119,000 for the first time since October 2, trading at $119,028, down 1.7% on the day [1] - Other major cryptocurrencies, such as Ethereum and Solana, saw sharper declines, with both down nearly 5% in the last hour, priced at $4,107 and $211 respectively [1] Liquidation Events - The crypto market faced a surge in liquidations, with CoinGlass reporting $459 million worth of liquidations in the last hour, predominantly from long positions [2] - Over the past 24 hours, nearly $773 million worth of positions have been liquidated [2] Broader Market Impact - The stock market indices also reflected a downturn, with the Nasdaq down 1.77%, the S&P 500 down 1.25%, and the Dow decreasing by 0.83% [2] Political Context - President Trump indicated a potential increase in tariffs on Chinese products, suggesting that this policy could have long-term benefits for the U.S. [3]

The latest FOMC news signals a clear dovish tilt among U.S. Federal Reserve officials, with the newly released minutes showing that additional rate cuts are likely before the end of the year. Most participants judged that it would be “appropriate to ease policy further over the remainder of 2025,” marking a notable shift from the cautious tone that dominated much of the year. While the central bank remains officially committed to its 2% inflation target, the tone of the September meeting minutes suggests ...

Market Overview - The cryptocurrency market capitalization has decreased by 2.2%, now at $4.26 trillion, with 90 of the top 100 coins experiencing declines [1][2] - Total crypto trading volume is reported at $240 billion, which is higher than recent days [1] Price Movements - Bitcoin (BTC) has fallen by 1.8%, currently trading at $121,788 [2][3] - Ethereum (ETH) has decreased by 4.7%, now priced at $4,455 [2][3] - Dogecoin (DOGE) saw the largest drop of 5.7%, trading at $0.2462 [4] - Binance Coin (BNB) is the only coin in the top 10 that has increased, appreciating by 4.7% to $1,306 [3] - Plasma (XPL) experienced the highest drop among the top 100 coins, down 15.7% to $0.8776 [4] ETF Flows - US BTC spot ETFs recorded outflows of $23.81 million, while ETH spot ETFs saw inflows of $420.87 million [2] New Index Launch - S&P Global has introduced the S&P Digital Markets 50 Index, which tracks 50 major components in the crypto economy, including 35 publicly traded companies and 15 cryptocurrencies [5] Market Sentiment and Outlook - Market sentiment has shifted from the greed zone back to a neutral zone [2] - Analysts from Bitfinex suggest a bullish outlook for Q4, citing historical trends where October often sees market rallies following weak Septembers [6] - The "Uptober" phenomenon has historically delivered positive returns in nine of the past eleven years, with average gains of approximately 21% [6]

Bitcoin price touched new all-time highs above $126,192 on Monday, October 6, before retreating 4% toward $120,000 amid intense profit-taking on Tuesday. On-chain data shows the pullback coincided with unusual activity from dormant wallets, while derivatives indicators point to early rebound prospects. As Bitcoin corrected 4% on Tuesday, J. Martin, an analyst at CryptoQuant, alerted his 42,700 followers to on-chain data showing long-term holders taking profits at the top. According to Martin, wallets inac ...