Crypto Market Shows Pain and Potential After Massive Liquidation Event: Bitfinex Alpha

Last weekend, the crypto market experienced one of its most dramatic days in history. Bitcoin’s 18% pulldown triggered over $19 billion in liquidations within hours, the largest such event ever ￰0￱ and investor portfolios bled significantly, driving a massive wave of selling in the spot ￰1￱ that the worst is over, the market is still reeling from the pain and navigating the aftermath of the ￰2￱ the chaos, analysts at the crypto exchange Bitfinex have stated in their latest report that the market still shows resilience and recovery ￰3￱ may still have the potential to deliver a positive October for ￰4￱ Really Happened? On Friday, October 10, an escalation of U.

S.-China tariff tensions triggered a market-wide reaction that led to one of the largest pullbacks in ￰5￱ plummeted from a high above $126,000 to $101,000 (on some exchanges), wiping out all gains accumulated in roughly six weeks. A previous Bitfinex report highlighted that the $118,000 level was crucial for BTC because of the dense supply cluster at that ￰6￱ also mentioned that a decline below this price would be followed by further downside, and this prediction played out on Friday, even exceeding ￰7￱ total crypto market cap fell by more than 13.2% within 24 hours to $3.7 trillion, losing roughly $1 ￰8￱ altcoins lost 80%-90% of their value as order books thinned ￰9￱ positions saw the most liquidations, with BTC and ETH leading the ￰10￱ attributed a large portion of the decline to aggressive spot selling across major exchanges in the hour preceding the U.

S.-China tariff ￰11￱ imbalance between spot buyers and sellers exacerbated the liquidations as the market structure was ￰12￱ the liquidation event was the largest in history, Bitfinex clarified that bitcoin’s decline was nowhere close to its largest pullback in this ￰13￱ only issue was the speed of the plunge, as it resulted in extreme moves across several ￰14￱ There Still Hope? Since the event played out in a period of positive seasonality for BTC, analysts believe a swift recovery remains possible. However, major crypto assets need to consolidate and narrower price channels need to be sustained over several weeks for ￰15￱ needs to reclaim and hold above $110,000 with sustained spot buying ￰16￱ the leading asset fails to regain this level, then it would likely retest the October 10 lows.