Tag: Bitcoin (BTC) Price

Bitcoin hovers near $100K after a 10% drop. Analysts eye key support and liquidity zones for signs of a possible rebound or breakdown.

Bitcoin is hovering around $101,800 after a steady decline pushed it below the October 10th low. This level is being watched by market analysts as it matches an earlier area where liquidity was absorbed.

With selling pressure increasing and market activity rising, this point could play an important role in what happens next.

Price Tests Liquidity Area Below October Crash

Bitcoin has seen a drop of over 10% in the last seven days. It is now trading just above $100,000, near a zone that some consider critical. Analyst Michaël van de Poppe said he is watching to see what happens “when Bitcoin takes the liquidity from the October 10th crash.” He pointed out that this could lead to a bounce or mark the start of a bottoming phase.

Really keen to be seeing what’s happening when #Bitcoin takes the liquidity form the October 10th crash.

That should be a key point for potential bounces/bottom formations.

Disastrous start of the month.

$112K remains the crucial level for any new ATH attempt. pic.twitter.com/x6fDoQBTIk

— Michaël van de Poppe (@CryptoMichNL) November 4, 2025

Notably, the price has moved between $99,000 and $104,500 in the past 24 hours (CoinGecko data). Its all-time high remains at $126,080, which it hit 30 days ago. Van de Poppe also noted that a move back to $112,000 would be needed before any serious talk of a new high can begin.

Bullish Signals and Recovery Scenarios

Analyst Ali Martinez stated, “Bitcoin could rebound here to at least $106,500 or $112,000.” The support zone around $100,000 has acted as a base before and may do so again if selling slows.

Based on his chart, there are two likely paths: a quick rebound or a small dip before recovering. In both, the first target sits around $106,500.

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Another analyst, CryptoBull_360, stated that Bitcoin has broken out of an ascending wedge pattern with strong volume. He noted that the price is still trading above the 50-day moving average, which is acting as support.

“The price is expected to retest the breakout level, and a break below the 50-day moving average could trigger further declines,” he said.

Bearish Pressure and Liquidity Risks Remain

Not all signals point to recovery. Analyst Ted pointed to two areas with large liquidity: around $90,000 and near $126,000. He warned that “a dump to fill the CME gap before reversal could happen.” The option market is showing smaller moves, which often means traders are unsure and staying out for now.

Reports also show that recent buying has not gained much strength. Self-custody is rising, but buyers aren’t stepping in with enough volume. Meanwhile, treasury firm Sequans Communications sold 970 BTC, cutting its holdings by nearly one-third. The firm used the sale to reduce its debt from $189 million to $94.5 million.

So far, the zone between $100,000 and $102,000 is holding, but pressure remains. Whale wallets sold off $272 million worth of Bitcoin, as previously reported. If that trend continues, bulls may struggle to defend current levels.

The $112,000 mark remains a key area for any larger recovery. Until that point is regained, Bitcoin may stay in a holding pattern.

Bitcoin weakness triggers top calls. But an analyst says if $125K was the peak, $107K support would have collapsed months ago.

Bitcoin kicked off November with fresh weakness as it slipped toward $107,000, as the market remained on edge about deeper downside tests. Because the market still hasn’t shown any real strength, a growing number of traders now believe that $125,000 marked the official cycle top.

But crypto analyst Mr Wall Street is now directly opposing the popular narrative. He argues the exact opposite and explained that the current price behaviour proves that this level is nowhere near a proper cycle exhaustion ceiling.

120 Days Sideways

His core evidence is that Bitcoin has now spent 120 days moving sideways between the Value Area High at $120,000-$123,000 and the Value Area Low at $107,000-$110,000 with zero breakdowns below support and zero confirmed reversals at resistance. In his view, if $125,000 truly was the top, the price would not be holding strong at the bottom of the range for 4 months while retail panic-sells.

Instead, the analyst points out that even after retail sold roughly 365,000 BTC during this sideways range, around 3,150 BTC per day, the price still refused to crack below $107,000-$110,000, which he believes is the clearest sign that large institutional buyers are absorbing every coin dumped by small players.

Mr Wall Street says that if this were a true top, a breakdown would have already happened, especially given the amount of supply that has been flushed out. Because the lower boundary refuses to break, he believes this is not a distribution into a top, but an accumulation before the next leg higher. He also highlights that there is a visible imbalance to the upside, which points back to a move toward $120,000-$123,000.

He personally remains long from an average entry of $107,750 and said there is nothing in the structure that suggests closing those longs is necessary or logical.

Macro Bears Push Back

Not everyone is optimistic about Bitcoin’s trajectory. Another prominent analyst ‘Doctor Profit’ said that Bitcoin is not positioned for another immediate leg higher. According to him, the end of Quantitative Tightening has only been announced for December 1, 2025; it has not started yet, and until that date arrives, the Fed is still removing liquidity from the system. That is bearish for risk assets, including Bitcoin.

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He also corrected claims that the Fed “printed” $50 billion last week, while observing that this was simply a temporary overnight repo loan and not new money creation. For Bitcoin, he says this detail matters because the crypto asset only truly rallies when real liquidity enters the system. Currently, the reverse is happening. As liquidity is being withdrawn, repo stress is emerging, and banks are paying more to borrow dollars. He believes that this is classic late-QT tightening, the same stage that preceded the 2019 repo crisis and the 2020 crash.

As a result, Doctor Profit says traders expecting Bitcoin to surge higher soon are making the wrong assumption.

The bears are back in town.

Nearly a billion worth of long positions have been wrecked in the past 24 hours as the positive macro developments have failed to propel a price rally for risk-on assets like crypto.

Just the opposite, bitcoin and most altcoins have headed south once again in the past hour, with numerous weekly lows.

The promises of an Uptober have crashed and burned in 2025 as the market has failed to produce any substantial gains since the early surge to a new all-time high. Bitcoin’s chart from above demonstrates that the asset has been in a free-fall state ever since that peak marked on October 6.

Even if we exclude the flash crash four days later, BTC is still nearly $20,000 down in just over three weeks. The asset was rejected at $116,000 twice in the past four days, and the bulls put all hopes on yesterday’s Fed rate cut and today’s meeting between Presidents Donald Trump and Xi Jinping. Both of those events led to what the investors expected and hoped for: a reduction in interest rates and lower tariffs on China.

Yet, the cryptocurrency market failed to capitalize. Just the opposite, bitcoin slumped from over $112,000 yesterday to $107,500 minutes ago, which became a new weekly low.

The market leader’s nosedive dragged the altcoins along, with ETH dumping by 5% to under $3,800 and XRP dropping by over 6% to $2.45. Even more painful declines come from the likes of HASH (-22%), ASTER (-13%), KAS (-11%), PI (-10.5%), WLFI (-10%), and many others.

Such big moves in either direction tend to harm over-leveraged traders, and the correction in the past 24 hours is no different. More than 210,000 such market participants have been wrecked daily, while the total value of liquidated positions has skyrocketed to more than $1.1 billion. Naturally, almost all of that amount came from longs ($974 million).

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Bitcoin futures hit $543 billion in October, amidst renewed traders’ appetite for leverage and institutional bets on the next bull run.

Bitcoin continues to dominate Binance’s futures market, commanding 27.17% of the platform’s total $2.002 trillion futures trading volume in October.

This represents a significant increase from September’s $1.95 trillion, amidst a resurgence of both institutional and speculative interest in the derivatives sector despite last week’s market pullback.

Bitcoin Futures Heat Up

Specifically, Bitcoin futures trading volume surged to $543.33 billion in October, which, according to CryptoQuant, is up from $418 billion in September and slightly above August’s $542 billion. The steady trading activity above the $2 trillion threshold highlights an optimistic market environment characterized by robust liquidity and renewed confidence.

Such consistent growth in trading volume often comes before heightened price movements, which indicates the potential for increased volatility in the near term. If this momentum aligns with rising funding rates and expanding open interest, it could set the stage for another bullish phase driven by deep-pocketed institutional participants and active speculators.

These factors taken together position Bitcoin to challenge and break key resistance levels, further validating the broader recovery lately seen across the crypto market.

As for its price trajectory, Bitcoin’s current market dynamics appear to be entering an accumulation stage, according to crypto analyst Axel Adler Jr. He noted that the Bitcoin Heat Macro Phase has pivoted into the Bottom/Accumulation zone, which is typically a signal of waning speculative pressure and potential groundwork for the next growth phase. Adler stressed that for a meaningful rally to unfold, volatility must stabilize, and external market shocks should remain absent for at least a week.

Meanwhile, researcher 0xNobler stirred speculation by reporting that an insider with a “100% win rate” just opened $150 million in long positions ahead of Donald Trump’s scheduled speech. The trader’s impeccable track record in predicting Bitcoin and Ethereum swings could point to possible insider knowledge or coordinated market anticipation.

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All Eyes on CPI

The long-delayed US Consumer Price Index (CPI) data for September is set to be released later today after a week-long postponement. Economists expect consumer prices to have risen for a second consecutive month due to higher costs in tariff-sensitive goods, while easing shelter prices may temper services inflation. Wells Fargo’s Sarah House said that goods inflation is likely to remain elevated despite some cooling in services.

Bitfinex analysts added that a core CPI reading above 3.2% year-on-year could lift real yields and pressure Bitcoin, whereas a softer print below 2.8% could boost risk appetite and potentially benefit BTC.

2025 sets a new record as dormant Bitcoin over seven years awakens.

2025 is shaping up as a record-breaking year for the movement of long-dormant Bitcoin. New data revealed BTC inactive for seven or more years, showing significant activity. So far this year, 270,000 BTC have been transformed, which is a new all-time high.

This figure has already surpassed 2024’s 255,000 BTC and far exceeded 2023’s 59,000 BTC, with two months still remaining.

2025 Becomes Year of the Awakening

CryptoQuant explained that Bitcoin’s surge in long-dormant coin movements may stem from several factors, such as old miners relocating long-held reserves, transferring funds to fresh cold wallets for enhanced security, and partial liquidations as elevated prices present lucrative opportunities.

At the current pace, 2025 could see more than 300,000 BTC with 7+ years of dormancy being moved.

Adding to the trend, a tweet from on-chain analytics platform Lookonchain highlighted a miner wallet 18eY9o, which has been dormant for 14 years and holding 4,000 BTC mined in 2009 and consolidated in 2011, recently became active. The wallet holder transferred 150 BTC, which is worth roughly $16.59 million.

This move is part of the broader pattern of early-era coins resurfacing, suggesting both strategic repositioning by miners and renewed liquidity from historically inactive addresses.

Bitcoin noted a modest 2.1% surge in the past day as it trades at $111,178. With more long-held coins potentially entering circulation, it would be interesting to see how these dormant Bitcoin awakenings could influence price trends and investor behavior in the final months of the year.

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Dormant Bitcoins Awakening

In September, a 12-year-old miner-era wallet transferred 400.08 BTC, valued at roughly $44 million, to multiple new addresses. The coins were originally mined 15 years ago. A humorous X post even noted the generational wealth unlocked by awakening a decade-old wallet.

Earlier, in July, a 14-year-dormant wallet containing over 80,000 BTC moved 20,000 BTC worth $2.4 billion, with billions more sent to institutional custodian Galaxy Digital. The reactivation of multiple wallets, some funneling funds to exchanges like Binance and Bybit, drew immediate comparisons to the Mt. Gox trustee sell-offs of 2024 and raised fears of a market correction.

Bitcoin is once again struggling to find momentum after an aggressive drop a couple of weeks earlier. This current price behavior reflects hesitation from both bulls and bears, with traders closely watching to see whether BTC can hold its key support levels or if a deeper correction is coming. While the macro structure still leans bullish, short-term technicals are starting to show cracks.

Technical Analysis

By Shayan

The Daily Chart

On the daily timeframe, Bitcoin is hovering around a crucial intersection of the ascending trendline of the large channel and the 200-day moving average near $108K. The 200-day moving average is holding as dynamic support, but price has dropped below the 100-day MA, located around $114K, signaling fading bullish momentum.

The RSI remains weak around 40, and the series of lower highs since September’s all-time high confirms the short-term downtrend. If this current support zone breaks decisively, sellers could drag the price down toward the $100K critical level. On the other hand, to shift sentiment, the price needs to reclaim $114K with strong follow-through.

The 4-Hour Chart

Zooming into the 4H chart, Bitcoin is caught in a tight range between $108K and $116K, just above the rising trendline. This area has been tested multiple times, forming a short-term floor. However, each bounce is becoming weaker, suggesting buyer exhaustion.

RSI on this timeframe is flat, hovering in the mid-40s, showing a lack of directional conviction. If the price breaks below this trendline, expect a sharp move down to retest the key support zone around $100K. On the flip side, bouncing back above $110K with volume could shift momentum back toward the $114K–$116K supply zone.

On-Chain Analysis

Short-Term Holder SOPR (30-Day Moving Average)

From an on-chain perspective, the Short-Term Holder SOPR has dropped below 1, indicating that some recent buyers are realizing losses. This typically signals a cautious market, as short-term holders are less likely to sell at a loss unless forced.

The recent SOPR peaks also show that profitability spikes have been consistently sold into, reflecting weak conviction during recent upswings. Until SOPR can reclaim and hold above 1, short-term rallies may continue to be met with distribution. This reinforces the importance of spot support zones, as they are now key battlegrounds between patient buyers and uncertain holders.

Bitcoin retests its 50-week SMA after sharp volatility. Traders watch $111K resistance as funding rates recover and market sentiment stays cautious.

Bitcoin has returned to a key technical level that has played a central role in previous rallies. The 50-week Simple Moving Average (SMA), often called the bull market baseline by traders, has acted as a reliable support zone since early 2023.

As of press time, Bitcoin is trading at around $111,200, showing a modest daily gain while still down over the past week.

Bitcoin Retests Long-Term Support

The chart shared by Merlijn The Trader shows that each time Bitcoin has retested the 50-week SMA since 2023, it has gone on to make new highs. The moving average has become a key level for identifying changes in trend. In early 2022, Bitcoin broke below it, marking the start of a broader correction.

Since then, however, the price has repeatedly returned to this line before continuing higher. The most recent touch of the SMA has once again attracted attention from traders watching for signs of a new upward move. Merlijn stated:

BITCOIN JUST RETESTED THE BULL MARKET BASELINE.

The 50-week SMA marked every major liftoff since 2023.

Smart money buys the retest.
Retail buys the breakout.

This chart separates traders from tourists. pic.twitter.com/hw8hWmOKPJ

— Merlijn The Trader (@MerlijnTrader) October 20, 2025

Sentiment Still Unsettled After Liquidation

Market confidence remains low following a large liquidation event on October 10. Funding rates, which reflect the cost of holding long or short positions in the futures market, dropped into negative territory on October 17. This suggests that many traders were leaning toward short positions, betting on further declines.

Since then, funding rates have recovered and are now back above 0.005. Although this shift shows some return of buying interest, the caution in the derivatives market shows that traders are not yet fully convinced by the rebound. This kind of hesitation is common after a strong pullback, especially when losses were sudden.

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Key Price Levels in Play

Bitcoin is currently trading near a resistance area at $111,440. This level marked the start of a previous decline that took the price below $108,600. According to analyst Lennaert Snyder, breaking and holding above $111,440 could open the way for a move toward $115,800. If that level is also cleared, price may revisit $120,800, where a fast selloff occurred earlier.

Bitcoinsensus reported that the weekly candle closed above the $107,200 low, a move that could support a continued push higher. They also noted that the Bitcoin liquidity index has started to rise for the first time since July, a possible sign that new capital is entering the market.

Broader Trends and External Pressure

EGRAG CRYPTO noted that Bitcoin appears to be following a recurring pattern. The analyst suggested that the market may be entering the final stage of an upward cycle. Suggesting that a sharp reversal could follow after retail participation increases, EGRAG added,

“Everyone will think we’re finally safe… but that’s where the real twist comes.”

Notably, the recent correction was partly driven by political news, as we reported. A drop at the end of last week followed comments from former US President Donald Trump about new tariffs on China. This created uncertainty across financial markets and added pressure on crypto assets.

As reported by CryptoPotato, data from prediction platform Polymarket showed some skepticism in the retail space. Their latest odds gave a 6% chance of aliens being confirmed this year, compared to just 5% for Bitcoin reaching $200,000. While meant to entertain, it reflects how cautious traders have become in setting near-term expectations.

Short-term Bitcoin traders appear to be sweating over the next breakout.

Amidst recovery attempts, Bitcoin (BTC) has made a modest surge of 4% over the past 24 hours as it trades just around $111,000. Despite last week’s market volatility and the subsequent devastating losses, long-term holders are relaxed and profitable.

The same cannot be said for short-term traders who are eyeing Bitcoin’s rebound above $113K to breathe again.

Bitcoin’s Profit Divide Widens

According to Alphractal founder Joao Wedson, Bitcoin’s current market mood is split between two distinct tribes. The calm veterans and the nervous newcomers. Long-Term Holders (LTHs) remain unfazed, their unrealized profits still comfortably in the green. They have seen it all before, and for them, the real concern does not even begin unless BTC slips below $37,000. That threshold remains comfortably distant from current levels.

Short-Term Holders (STHs), on the other hand, are nursing losses and praying for a revival above the $113,200 mark. Ironically, that same level could become a battleground as a breakout would return many STHs to profit, but it could also trigger waves of profit-taking, thereby muting further upside momentum.

Structurally, Bitcoin’s NUPL metric validates the idea of this divide. This is because long-term conviction remains intact, while the LTH/STH SOPR Ratio paints a picture of changing behavior. LTHs appear to be easing off their selling pressure and are letting the market breathe, while STHs are still clawing for short-term gains. This setup is reminiscent of late 2021, when fresh all-time highs were forged.

The latest market condition suggests that while the old guard is coasting on earlier wins, the restless crowd still has something to prove.

“LTHs have already locked in a good share of their profits – in March 2024, December 2024, and more recently, near the last ATH. Now, they’re relaxed, probably enjoying some time on a yacht with their families. Meanwhile, STHs are anxiously watching the charts, hoping for Bitcoin to break above $113K so they can finally smile again.”

Impact of Easing US-China Tensions

Now that Bitcoin has successfully reclaimed the key $109,000-$110,000 support zone, a level that had previously acted as a crucial pivot in recent market structure, crypto analyst Ted Pillows believes that the next major hurdle lies at $112,000, a breakout above which could open the path for renewed bullish momentum.

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Pillows believes that the current macro backdrop adds further tailwinds to BTC’s potential upside, especially as US–China trade tensions appear to be easing. The reduction in geopolitical strain could boost investor confidence across risk assets, including crypto, by softening the global risk-off sentiment that had previously dampened speculative appetite.

Bitcoin continues to struggle after the massive liquidation event earlier this month. The market’s optimism has cooled, and BTC is consolidating near $111,000 as traders remain cautious.

Technical Analysis

By Shayan

The Daily Chart

On the daily chart, BTC is hovering just above key support around $110,000, which is the critical 200-day moving average, while the 200-day moving average is acting as a resistance above the price around $116,000.

The $110,000 area remains critical, and a decisive breakdown could send the market toward $101,000 and the lower boundary of the large descending channel. Meanwhile, the RSI around 42 signals neutral momentum, reflecting hesitation among both bulls and bears. Unless Bitcoin reclaims $116,000 with strong volume, the broader uptrend remains at risk of losing its mid-term structure.

The 4-Hour Chart

The 4-hour chart highlights a tight consolidation between $110,000 and $116,000 after the strong downward impulse. The $110,000 range continues to hold as a demand zone, but repeated tests have weakened its reliability.

Resistance sits at $116,000, as already mentioned, which capped every recovery attempt over the past few days. The RSI also remains flat near 40, indicating equilibrium on the 4-hour timeframe, but the lack of momentum suggests the market could break down if sellers regain control.

Sentiment Analysis

Futures Open Interest

Open interest across exchanges has sharply declined following the recent selloff, reflecting a clear reduction in speculative activity. Traders are avoiding aggressive positions after getting liquidated during the last move down.

This decline in leverage shows that the market is resetting, but it also signals a lack of conviction for any strong bullish continuation in the short term. Investor sentiment remains fragile, as fear is outweighing greed, and most participants are waiting for a stronger confirmation before re-entering long positions.

Retail investors remain quaking in fear and doubt following the record crypto liquidation event over the weekend. 

Retail crowd fear, uncertainty, and doubt (FUD) continue to be a strong buying signal for Bitcoin and altcoins, reported Santiment on Tuesday. Analysts shared a chart illustrating the ratio of all positive to negative comments across social media over the past seven months.

“In every one of these cases, FUD took over due to world events that were overreacted to from a market perspective,” they stated before adding that the market usually moves opposite to retail expectations.

“Retail’s emotions often dictate that Bitcoin’s and altcoins’ prices are about to do the opposite.”

📈 The below chart represents the ratio of all positive vs. negative comments across social media over the past 7 months. We have marked arrows next to the 4 most negative days since March, with the latest one occurring Friday after the US temporarily implemented 100% tariffs on… pic.twitter.com/KUhzN0mGjy

— Santiment (@santimentfeed) October 13, 2025

Don’t Fear a Flash Crash

Fear still seems to be controlling sentiment despite the market recovery. The crypto Fear & Greed Index remains at 38 (fear) after falling to 24 over the weekend, its lowest level since the April market crash when Trump first announced tariffs.

In a separate post, Santiment reported that altcoin traders who bought the dip following the weekend rout “were handsomely rewarded,” noting large gains for Sui, Bittensor, and Ethena.

Crypto venture capitalist “Dan Gambardello” is one of the diamond hands who has remained bullish. He shared a chart of the total market capitalization on Tuesday, showing how it has been steadily increasing despite these flushouts caused by degen derivatives gamblers.

“Stay focused, have a plan, and ignore the negative anonymous comments on social media. A massive bull run is charging!”

Take a look at the total crypto market cap monthly chart!

If you’re ready for what’s next, congratulations!

Stay focused, have a plan, and ignore the negative anonymous comments on social media.

A massive bull run is charging! pic.twitter.com/WFvp6YEv3j

— Dan Gambardello (@cryptorecruitr) October 13, 2025

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Real Vision founder and CEO Raoul Pal was equally bullish, brushing off the FUD and stating that, regardless of what sparked it, Friday was a flash crash.

“Flash crashes usually recover in V-shapes back to their prior price/range and usually go on to make new highs shortly after. In this case, we entirely wiped out all accumulated leverage, too. Higher.”

Meanwhile, ‘Degen Ape Trader’ took a look at gold charts, noting that Bitcoin remains a laggard in choppy price action. “We had the same situation 10 months ago, and at the end of the tunnel, TradFi started heavily rotating money from gold to Bitcoin,” he said before predicting BTC could hit $170,000 by December.

Bitcoin, Altcoins Fall Back

Despite the wave of post-crash bullposting this week, Bitcoin was rejected at $116,000 on Monday and fell heavily over the past 12 hours to $112,000 during Tuesday morning trading in Asia. However, it has been trading in this range since it broke above $108,000 three months ago in mid-July.

“Ultimately, after this massive crash, the maximum pain scenario is up,” said crypto podcaster Michaël van de Poppe before adding, “The markets were grinding up already, and I think that these will resume.

“That’s why I think that altcoins are the play. ETH is the play. Risk-on is the play.”

“I think selling right now could be the stupidest thing you could ever do,” one popular analyst argued.

“Uptober’s” legacy was put to the test towards the end of last week when US President Donald Trump threatened to impose 100% tariffs on crucial Chinese technology products. The crypto market nosedived immediately after the announcement, with Bitcoin (BTC) briefly crashing to as low as $101,000 on some exchanges.

In the following days, though, the bulls reclaimed much of the losses, and now the big question is whether the asset is ready to soar to a new all-time high during this cycle.

More Room for Growth?

As of this writing, BTC trades well above $115,000, representing a 3.5% increase on a daily scale and a substantial resurgence from the local low. Many analysts believe the worst is over, while some, like Alex Becker, think this could have been the actual “start of the bull market.”

He argued that the market has been quite “boring” lately and that the crash put a “zesty sauce” that could bring some necessary dynamics to the sector. Becker claimed that the collapse was nothing more than an “overreaction” to Trump’s announcement, describing it as “the most manipulative dump in the history of crypto.” According to him, BTC may reach a new historical peak as early as this week, suggesting that “selling right now could be the stupidest thing you could ever do.”

The veteran trader Peter Brandt also chipped in. He assumed that BTC, as well as some leading altcoins like ETH, XRP, and XLM, remain in a good position to attack fresh tops.

For his part, X user Ted told his 213,000 followers that the primary cryptocurrency could reach a new ATH if it reclaims the crucial resistance level of around $117,500.

Exploring Some Indicators

Multiple important metrics, such as BTC’s exchange reserve, support the bullish theory. CryptoQuant’s data indicates that the amount of BTC stored on crypto platforms recently dropped to a seven-year low of approximately 2.43 million assets.

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Next on the list is the popular Fear & Greed Index, which measures the overall market sentiment across investors. On October 12, it plunged to 24, the lowest point since April this year, while currently it is set at 38, which is again “Fear” territory.

This development signals that many market participants show signs of panic and pessimism. However, the crypto market is an unusual one, and it often moves against the crowd’s expectations. This is why Warren Buffett’s timeless principle – to be greedy when others are fearful and fearful when others are greedy – has become increasingly relevant in the volatile sector.

The liquidations are through the roof, prices are collapsing, and here’s what we know so far.

The events that transpired in the past day or so are not unusual in the ever-volatile cryptocurrency market, but they tend to harm certain traders more than others. While many felt the pain of being liquidated, others seem to profit.

In the span of just 12 hours or so, the entire market went from a capitalization worth $4.120 trillion on TradingView to $3.3 trillion, which meant a wipe-out of almost $900 billion. This pushed the metric down to its lowest levels since July, erasing months of gains, before it recovered to $3.670 trillion as of press time.

What We Know

Whenever such crashes occur, the cryptocurrency community rushes to offer different views on the matter, trying to explain what happened and provide some insights on what might follow. The current collapse is no different, as Crypto X is full of various opinions and speculations on the matter, especially since it became the single-largest liquidation event in the digital asset market.

The most talked-about reason is, surprise, surprise, US President Donald Trump. In what felt like a deja vu, the POTUS alleged China of deception in certain areas and threatened to impose a new set of tariffs on Friday, which triggered the first wave of market-wide declines. He made it official a few hours later, confirming that these tariffs will begin on November 1.

The Kobeissi Letter, though, indicated that markets were “LOOKING” for a good reason to correct, given the massive amount of leverage, especially in crypto.

The blatant reality:

Heading into President Trump’s 100% China tariff announcement, markets were LOOKING for a catalyst to pull back on.

Leverage was through the roof and we had not seen a 2%+ decline in the S&P 500 for 6 months.

President Trump’s post became THE REASON to…

— The Kobeissi Letter (@KobeissiLetter) October 11, 2025

Bull Theory alleged that one of Bitcoin’s oldest wallets might have known what was about to happen as they opened big short positions on BTC and ETH a day before the announcement and doubled down as events started to unfold. They closed all shorts with a profit of roughly $200 million in just a day.

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Bull Theory added that this wasn’t a retail-driven dump, as it has been on some occasions in the past. Instead, they noted that it “felt structural, as if a fund or a desk was forced to unwind positions all at once.”

What’s Next?

Naturally, after trying to explain what happened, the next step is to offer a prediction of what’s to come. The majority of the crypto community seemed adamant that this is a proper buy-the-dip moment, as similar crashes are typically followed by large moves in the opposite direction.

“So yes, the headlines scream Market Crash. But zoom out the structure didn’t break. It just reset. The whales already took their entry. Retail panic is peaking. And history says, that’s exactly when the next leg begins,” said Bull Theory.

CZ concurred, indicating that this could be the next “COVID crash,” when BTC dumped to $4,000 but exploded in the following months.

👇 https://t.co/4O6i3MsfIA

— CZ 🔶 BNB (@cz_binance) October 11, 2025

However, Crypto Bully outlined a different projection, which is a lot more painful if Trump proceeds with the tariffs:

“- Unless Trump changes his statements immediately on Monday, this will not be a V reversal. Most alts with 50-70% wicks will bleed down and fill them or partially fill it before reversal.”

Different Perspective

While most are focused on price drops, reasoning, and future behavior, Cobie highlighted a different perspective on the situation. The popular X user believes such collapses are a perfect example of why investors should avoid taking leveraged positions, as they can wipe out years of gains.

Instead, they need to focus on building a long-term portfolio by holding only assets that they are bullish on and believe in. This means steer clear of speculative tokens that only chase hype without actual utility.

“When everyone is making hilarious amounts of money I am always tempted to start using leverage again. It is almost impossible to fight the feeling that you’re not making enough, or everyone else is outpacing you. Good reminder that fighting that feeling and avoid the wipeouts is worth it in the end. Don’t let a leverage blowup dictate your long-term views. The future is bright, good things to come, patience is rewarded.”