Hougan says crypto’s resilience shows growing market maturity

The recent crypto market crash caused by President Trump’s threat of tariffs against China has generated a mixed ￰0￱ Chief Investment Officer Matt Hougan said the event was short-lived, adding that crypto’s fundamentals remain solid despite the extreme ￰1￱ stock market began to tumble as Trump called for a 100% tariff on Chinese imports after Beijing threatened to halt exports of rare ￰2￱ post, which was circulated late Friday on Truth Social, surprised ￰3￱ markets all over the world shut down, crypto was the only one open, and the first to ￰4￱ crashed by close to 15% to about $100,000 on various exchanges, with overleveraged trades being liquidated in a historic 20 billion ￰5￱ dropped over 20%, and Solana dropped over 40%.

Bitcoin, however, bounced back to about $115,000 on Monday following the indication by Trump that he is willing to defuse the trade ￰6￱ described the event as “a blip, not a breakdown.” He stated that crypto recovered in a short period since its base, i. e., technology, regulation, and institutional adoption, were not ￰7￱ the crypto system withstood the stress In a client note, Hougan identified three areas of emphasis: market stability, technology resilience, and investor ￰8￱ to him, there was no significant player who fell during the sell-off, and the losses were mainly limited to individual ￰9￱ partners such as custodians and liquidity providers affirmed that the institutions remained ￰10￱ also said that blockchains had passed a test of critical ￰11￱ exchanges like Uniswap, Aave, and Hyperliquid continued to operate smoothly even as centralized exchanges ￰12￱ implemented a $400 million recovery plan following depegging incidents, which resulted in $283 million in ￰13￱ those issues, Hougan said that crypto’s decentralized systems coped better than ￰14￱ sentiment was also ￰15￱ mentioned he didn’t get many panicked messages from clients during the crash, which he says is an indication that professionals saw the sell-off as a temporary correction and not a systemic ￰16￱ split on the nature of the crash Market observers are still divided as to whether the crash was organic or ￰17￱ blamed major market makers for deepening the sell-off by withdrawing market liquidity ￰18￱ analysts, such as CryptoQuant, said the event was an orderly ￰19￱ Friday’s crash, spot volume hit $44B (near cycle highs), futures $128B, while OI dropped $14B with only $1B in BTC long liquidations. 93% of OI decline wasn’t forced – this was a controlled deleveraging, not a cascade. 👉 A very mature moment for ￰20￱ — Axel 💎🙌 Adler Jr (@AxelAdlerJr) October 14, 2025 Data indicated that open interest in crypto futures declined by between $26 billion and $14 billion, while the volume on decentralized exchanges increased to $177 ￰21￱ lending fees hit a record $20 million, signaling heightened trading activity rather than ￰22￱ to blockchain analyst YQ, liquidity disappeared from order books when Trump posted, resulting in a 98% reduction in market depth, until prices ￰23￱ referred to it as a liquidity vacuum enhanced by automated trading programs.

Short-term volatility, long-term strength Hougan anticipates short-term jitters when the market makers withdraw following the ￰24￱ explained that lower liquidity might lead to greater price volatility. Still, he noted that the long-term drivers of the crypto economy remain in place, including regulatory clarity, institutional adoption, and technological innovation. “Markets may breathe heavily for a few days,” Hougan said. “ But when investors refocus on fundamentals, the bull market will resume.” At the time of this writing, Bitcoin is trading at $110,920, Ethereum at around $4,100, and Solana at slightly more than $200. Although the weekend was chaotic, analysts had concurred that the fact that crypto could recover swiftly was indicative of its increased ￰25￱ up to $30,050 in trading rewards when you join Bybit today