Crypto Market Prospect: After the Washout, the Soil Looks Richer

A sharp crypto sell-off followed a policy jolt from ￰1￱ Friday, President Trump threatened a 100% tariff on Chinese ￰2￱ stock markets closed, the first reaction hit venues that never ￰3￱ gaps grew, liquidity thinned, and leverage ￰4￱ shock arrived when ￰5￱ UK authorities unveiled a sweep against a Cambodia-based fraud network, including custody of roughly $15 billion in ￰6￱ rose over large off-exchange holdings, and risk appetite stayed ￰7￱ Happened in Markets The weekend rout erased about $19 billion of leveraged positions and affected roughly 1.6 million ￰8￱ dipped below $110,000. Ether slipped under $4,000. Altcoins fell harder on thin ￰9￱ liquidations drove most ￰10￱ activity spiked during the ￰11￱ volumes climbed, and protocol fees ￰12￱ saw a two-way flow, with a rebound after the weekend, while weekly returns stayed ￰13￱ signs point to funding stress rather than broken protocol use, which supports repair when volatility cools. $1.359B Retail Panic Signal as Markets React to Tariff Shock “On October 11th, retail addresses sent $1.359 billion to Binance alone… Historically, each of these surges in retail inflow falls in line with strong price ￰14￱ shows that retail remains reactive rather than… ￰15￱ — ￰16￱ (@cryptoquant_com) October 13, 2025 Data firms described a record one-day ￰17￱ headlines tied to tariffs and new port fees pushed de-risking across futures and spot ￰18￱ Tuesday, bounce attempts met supply, and equity proxies linked to crypto fell in step.

“Last Friday, you saw volatility just jump across the board, not only for short-dated, but also for long-dated ￰19￱ sentiment around short-dated volatility is that more people are worried about downward turns,” said ￰20￱ Head of Research Sean Dawson, according to ￰21￱ Investors and Traders Felt It Traders faced margin calls, forced unwinds, and wide ￰22￱ makers cut inventory risk, and funding reset across major ￰23￱ interest ￰24￱ retail cohorts rotated to ￰25￱ flows slowed during the ￰26￱ desks framed the shock as a stress test rather than a structural break. On-chain forensics now follow the sanctioned network and related ￰27￱ detail laundering paths and links to ￰28￱ screening can improve float quality once volatility ￰29￱ the Reset Can Set up the Next Phase Deleveraging removes excess and lowers the chance of another disorderly cascade in the near ￰30￱ cycles often saw steadier advances after funding and basis ￰31￱ indicators matter now: Net creations into spot ETFs; Stablecoin issuance growth; Order book depth on top pairs during Asia and Europe sessions.

A turn in those series often precedes price ￰32￱ risk still drives ￰33￱ headlines can shock liquidity ￰34￱ that removes criminal supply can raise institutional ￰35￱ tariff rhetoric cools and ETF demand returns, the crash can clear excess, improve depth, and re-anchoring valuations near stronger ￰36￱ Early Black Friday Bitcoin’s rally to $126k reversed amid macro stress and a $19B futures ￰37￱ inflows slowing and volatility spiking, the market enters a reset phase marked by a historic leverage ￰38￱ the full Week On-Chain below ￰0￱ ￰39￱ — glassnode (@glassnode) October 15, 2025 Rotation follows a familiar ￰40￱ caps stabilize first. Then, high-throughput chains and DeFi with rising fees and active ￰41￱ tied to real-world use can follow, including tokenized assets, restaking, DePIN, AI compute, and messenger-driven ￰42￱ a watchlist for protocol fees, active addresses, DEX share, and the spot-to-perpetual volume mix for BTC, ETH, Solana, TON, and leading RWA ￰43￱ these lines rise together with calmer funding, the sell-off starts to form a base.