From a historical perspective, the severe Fluctuation in the crypto market is often driven by high leverage and Liquidity issues. The big dump on October 11 was also described as "epic", with a total liquidation amount of 19.1 billion USD and over 1.6 million people getting liquidated, further confirming the seriousness of the deleveraging process. Such a scale of liquidation typically leads to the market bubble being squeezed, and risk leverage dropping to zero, thus laying the foundation for subsequent recovery.

Liquidity is a core factor. There are opinions that this big dump may not only be due to excessive leverage but also involves large market makers actively withdrawing liquidity, resulting in the market falling into a deep vacuum. This is related to the macro environment, such as the U.S. government shutdown and escalating fiscal disputes, which have affected dollar liquidity and, in turn, impacted risk assets like Bitcoin.

Although the market is under pressure in the short term, some analysts believe that the deleveraging process can help release risks and create conditions for the trend in the fourth quarter. There are differing views among institutions regarding the future market, as Galaxy Digital has lowered its target price while JPMorgan remains optimistic, reflecting the uncertainty in the market. However, overall liquidity conditions will determine the direction.
The current adjustment may be nearing its end, but the market still needs to pay attention to macro liquidity and structural risks.