【Virtual Currency】$1.9 billion liquidation triggers a sharp decline in the cryptocurrency market, Asian capital begins to accumulate foundational tokens

The cryptocurrency market has experienced extreme volatility, triggering multiple warning alerts and capital reallocation actions. Here are the key points:

Market faces significant liquidations and price drops

Due to the announcement by U.S. President Donald Trump imposing a 100% tariff on Chinese tech exports and strengthening export controls, panic spread across the market, leading to a historic liquidation event. Approximately $1.9 billion in leveraged positions were forcibly liquidated in a short period. Bitcoin fell more than 8–14% at one point, and Ethereum also saw significant declines.

Price rebounds but risks remain

Under heavy pressure, Bitcoin rebounded to around $114,000 on October 13, indicating some buying interest returning to the market. However, most analysts warn that the market may continue to experience volatility, with implied volatility indicators suggesting that upward momentum may be limited. The neutral Gamma positions of market makers could also suppress short-term increases.

Asian capital trends toward foundational infrastructure tokens

Investors have noted that as the bubble bursts, Asian capital is inclined to bet on tokens with "infrastructure/network traffic" attributes rather than purely value-storing assets. For example, China's Renaissance company is reportedly planning to establish a $600 million investment tool for the BNB ecosystem, indicating that institutional capital is undergoing a structural shift within the region.

Macroeconomic factors and market sentiment intertwine

The uncertainty of U.S.-China trade policies has become a major trigger for market volatility. On October 14, due to renewed U.S.-China tensions, Asian stock markets generally faced pressure, and the dollar's pullback also had cross-impact on cryptocurrency assets. Additionally, China's investigation into U.S. export subsidiaries and the strengthening of certain Port cross-border charging measures have exacerbated the market's shift in risk appetite.