Crypto's Biggest Liquidation Event

DAILY MARKET OVERVIEW

The $20 Billion Wipeout

👋 Hey, Crypto Enthusiasts! We just witnessed a "Black Friday" unlike any other. 🥶 

The market didn't just correct; it experienced one of the most brutal liquidation events in crypto history. Over $20 BILLION across centralized and decentralized exchanges was wiped out, and more than 1.6 million leveraged positions were vaporized in a matter of hours.

So... what the hell happened this time?

The Perfect Storm: Tariffs, Leverage, and a Cascade 🌊

The chaos was triggered by a nasty combination of geopolitics and market structure:

1. The Geopolitical Spark: Trump’s 100% Tariff Threat

Like last time, it was Tariffs, but this time, the threat was ramped up:

• President Trump’s posts threatening a 100% tariff on ALL Chinese imports instantly tanked the market. This wasn't just a threat; it was the match that lit the fuse on an already overloaded market.

• The market got caught in the crossfire of this escalating trade war over rare earth minerals.

2. Extreme Leverage & The Domino Effect

The crash was so severe because the market was built on shaky ground:

• Record Leverage: Before the crash, Bitcoin's open interest (a measure of leverage) was at a staggering $90+ billion high. It was a skyscraper built on toothpicks.

• The Cascade: When prices started to fall, highly leveraged positions were automatically liquidated by exchanges. These forced sales became massive sell orders, pushing the price lower, which triggered more liquidations. This vicious, self-reinforcing downward spiral is why we saw a $20 billion cleanup crew.

• Infrastructure Failure: The carnage was amplified by platforms like Binance, Coinbase, and DEXs reporting technical issues, frozen order books, and Oracle issues, which made the situation even more unpredictable and nasty for traders.

In short, one of the worst days for crypto traders ever.

The Aftermath

Jumping into today, altcoin open interest has nearly halved, now sitting around 29%. Historically, such levels often signal a market bottom.

Meanwhile, Trump is once again softening his stance on China, offering some much-needed relief across global markets.

It’s been a wild few days for crypto. Stay safe, avoid rash decisions, and remember, patience pays as the market works to find its footing again.

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SOCIAL SENTIMENT

Insiders Strike Again? 💢 

The crypto crash yesterday wasn’t just bad luck - it may have been planned.

While markets tumbled, one trader made a staggering $190 million shorting Bitcoin and Ethereum right before Trump’s tariff announcement on China. The timing was too perfect to ignore.

🔻 Here’s what happened:

• Oct 9, 16:39 GMT: $80 million deposited to short Bitcoin.

• A few hours later: $30 million more added to short Ethereum.

• 12 hours later: Trump posts about new Chinese tariffs - markets dip.

• Still not done: The trader keeps shorting right up to one minute before Trump’s next post announcing a 100% tariff.

• 30 minutes later: All shorts closed - profit locked in.

Same wallets. Same timing. Same precision.

Technically, it’s not “insider trading” since Bitcoin and ETH aren’t securities - but it sure looks like someone knew what was coming.

And this isn’t just crypto. Before OpenAI’s 10% stake in AMD was revealed, whales loaded up on AMD calls - those options jumped 300% in two days.

It’s becoming clear - the real alpha today isn’t analysis, it’s access. Those who move before the news breaks are the ones winning big.

For the rest of us, it’s a reminder: markets aren’t always fair.

NEWS OVERVIEW

The Latest Crypto Headlines 📰 

Hyperliquid Whale Who Made $150 Million Opens New $160 Million Short
A Hyperliquid trader who earned $150 million shorting last week’s crash is now betting another $160 million against Bitcoin.

YZi Labs-Backed Aster Delays Stage 2 Airdrop Citing ‘Data Inconsistencies’
Aster postponed its Oct. 14 airdrop to Oct. 20 after finding inconsistencies in user token allocation data.

Binance Pays $283 Million in Compensation Following Friday’s Depegs
Binance paid $283 million to users after USDe, BNSOL, and WBETH briefly depegged during last week’s crypto crash.

MARA Holdings Buys $46 Million in Bitcoin After Market Crash
MARA Holdings bought 400 BTC for $46 million following the market crash, signaling continued institutional confidence.

YOUTUBE INFLUENCER SUMMARY

Summary From The Top Influencers 📷️ 

Benjamin Cowen – Ethereum Drops 30%: Now What? (13.10.2025 Summary)

Benjamin Cowen is sticking with his long-standing thesis: Ethereum is on track to hit $5,300 in the current cycle. Despite recent volatility, he believes last week’s drop was just part of a healthy correction and that ETH is already starting its push toward new all-time highs.

Cowen’s Outlook – Key Points

• 30% drop was expected – Cowen had anticipated a 30% pullback after ETH’s first rally toward new highs. That’s exactly what played out.

• Recovery confirms strength – ETH has already bounced back to over $4,100, showing strong demand even after the correction.

• $5,300 is the minimum target – Cowen remains confident ETH will reach this level before year-end, based on historical regression models.

• Narratives change, cycles repeat – Each cycle has its own "reason" for corrections, but Cowen argues the technical pattern always repeats regardless of the news.

• ETH wick to $3,500 was key – He previously predicted a quick wick to this level before heading higher – and that exact move just happened.

• Cycle timing matters – With time running out in the four-year cycle, ETH must move fast if it’s going to top out this year.

• Will admit if wrong – Cowen says he’ll reconsider if BTC closes below its 50-week MA. Until then, he’s holding his view.

Final Takeaway

Cowen remains bullish on Ethereum and expects a move above $5,000 soon. While corrections are normal, he sees them as part of a larger structure playing out toward new highs before the current cycle ends.

Ivan on Tech – EVERYTHING CHANGED... big damage done (13.10.2025 Summary)

Ivan addresses the sudden market crash and urges calm. While many traders were caught off guard, he emphasizes that this wasn’t a random event - there were clear warning signs, especially the weak breakout that failed to gain momentum. Now it’s time to regroup, manage risk, and avoid revenge trading.

Ivan’s Outlook – Key Points

• Fake breakout triggered the fall – Bitcoin made a shallow new high but failed to follow through. This “flaccid breakout” was a red flag.

• No revenge trading – Ivan warns against rushing back in with leverage. Let the dust settle before making any big moves.

• Cycle may have peaked – or not – It's too early to call the bull run over, but traders must now respect both bullish and bearish outcomes.

• Altcoins were wrecked – and that’s bullish – Major liquidations wiped out weak hands. Ivan sees this as a healthy reset for the next leg up.

• Wait for the daily trend flip – Re-entry should be based on new strength signals, not emotion.

• Zcash showed surprising strength – While most alts crashed, Zcash held firm and continued upward, confirming growing interest in privacy coins.

• Zoom out – Even if this was the cycle top, the next bull market could start by late 2026 – or sooner if macro conditions flip.

Final Takeaway

Ivan remains bullish but realistic. This was a serious shakeout, but not the end of the world. Manage risk, wait for solid signals, and remember - even if we’re entering a downtrend, the long-term crypto thesis remains intact.

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