On the night of October 11, cryptocurrency markets experienced a massive crash: almost all coins from the top 100 fell by 30-60% in an hour, accompanied by record liquidations and panic selling.
According to CoinDesk, the market liquidated about $16 billion in leveraged long positions in major cryptocurrencies.
The sudden announcement by the US of a 100% tariff on imports of critical software from China heightened anxiety and triggered a massive sell-off of assets.
Bitcoin fell by about 7–8%, and Ethereum by more than 12% in a few hours.
CoinGlass recorded the liquidation of $8 billion in long positions on the cryptocurrency market in 24 hours.
Many users note that this flash crash was one of the sharpest in market history: most altcoins fell by 30-60% before the market attempted to recover.
The main reasons for the sharp collapse are:
Leveraged liquidations
Market participants often trade with leverage. When prices move sharply, the system automatically closes positions, which amplifies the downward momentum.
Macroeconomic and geopolitical shocks
The US decision to impose tariffs on Chinese technology products is perceived as an escalation in the trade war, which intensifies the outflow from risky assets.
Correlation with stock markets and the dollar
The strengthening of the dollar and the outflow of capital from risky assets is another factor of pressure.
Liquidity opacity in some assets
During a mass exit from the market, stable liquid assets (BTC, ETH) “drag down” less liquid altcoins, which “break” more strongly.
Panic and market psychology
A fall of this magnitude often triggers a chain reaction: when some start selling, others are forced to follow suit to avoid heavy losses.
Fixygen analysts suggest that a multi-process bottoming out is expected in the coming days, especially on weekends when liquidity is lower. According to some analysts, Bitcoin could rise by up to 21% during the week if the mood is favorable. The main benchmark for recovery is maintaining support in the $109-110 thousand range for BTC.
Source: https://www.fixygen.ua/news/20251011/pozhezha-na-rinku-kriptovalyut-oglyad-vid-fixygen.html
