A diagnosis of the crash on October 10

The crypto market has not yet fully recovered from last Friday's crash, which led to liquidations of around $19 billion. Many have accused cex and market makers of exacerbating the situation by limiting access to liquidity in a coordinated manner, but other experts have argued that it could have been an "organic deleveraging," a symptom of a more mature market.

According to data from DefiLlama, the open interest on DEX perpetual futures fell in a matter of hours from $26 billion to less than $14 billion, the most significant drop ever recorded.

This is therefore not a "systemic collapse," but rather a phase of healthy rebalancing. "At least 93% of the deleveraging was controlled, not a domino effect," stated Axel Adler Jr from CryptoQuant regarding the matter. "It was a moment of great maturity for Bitcoin." Specifically, the analyst referred to the $14 billion of open interest that "evaporated," of which only $1 billion would have concerned long positions on $BTC .

The most common opinion, however, remains that some market makers withdrew liquidity in a synchronized manner, artificially amplifying the crash.

About an hour after Donald Trump's announcement of a 100% tariff against China, in fact, liquidity literally collapsed with several malfunctions recorded by trading bots.

Certainly, the dump was also a strong test of resilience for the entire sector in a context of high leverage and concentrated liquidity. Analysts believe that episodes of controlled deleveraging are becoming increasingly frequent, signaling a less automated ecosystem and one more capable of absorbing extreme volatility.

Source: The Crypto Gateway #CryptoMarketAnalysis