The real reason behind this brutal crash is finally clear.
According to Tom Lee (Fundstrat / BitMine), the crypto market suffered a massive liquidity shock on Oct 10–11, 2025:
• $19–20B in liquidations
• 1.6M+ positions wiped out
And the ones who got hit the hardest weren’t retail traders —
it was the market makers.
Lee says liquidity providers — the “central banks of crypto” — saw their capital and risk models break down.
So they pulled back, depth vanished, and liquidity thinned across the entire market.
As a result:
• Upside is capped until liquidity returns
• Downside risk is amplified, because even small sell pressure can trigger outsized drops
Lee expects the recovery to take around 8 weeks, similar to 2022.
👉 We’re currently in Week 6 of that repair phase.
Stay sharp — the market is still fragile.
