The crypto market just clawed its way back to $4 trillion after surviving the biggest liquidation event in history last week. Over $19 billion in positions got wiped out, but analysts say the recovery shows this was structural deleveraging rather than a complete collapse.
Podcaster Scott Melker called it a “structural repricing” that forced everyone to reassess risk across the board. HashKey Group researcher Tim Sun said the whole move was purely structural, not some external shock like what happened in 2017 or 2021. The tariff scare with China amplified the selling pressure before things finally stabilized.
Bitcoin’s actually down only 0.6% for October so far, which seems almost miraculous given the carnage. Melker said he expected October to be deep red after that liquidation, but the market’s holding on better than expected. He doesn’t think we’re entering a bear market.
The “Uptober” narrative is still alive too. Historical data shows most gains happen in the second half of October, like 16% after October 15th in 2024, 29% in 2023, and 18% in 2020. Analysts think seasonal rotation plus liquidity repair could still push prices higher.
Near-term volatility is definitely expected, though. Tim Sun said sentiment hasn’t fully recovered and risk appetite remains pretty subdued. Medium-term catalysts like Fed policy easing and trade tensions cooling could support recovery.
Conclusion
Crypto rebounded to $4 trillion after a record $20 billion liquidation, with analysts citing structural deleveraging and seasonal Uptober patterns supporting a potential second-half October rally.
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