1st Anniversary Review of the October 11 Crash: Crypto Market Risks Persist, Investors Need to Reasonably Control Leverage

It has been one year since the "Oct 11 Crash". Back then, Bitcoin hit an all-time high of roughly $126,000, then plummeted rapidly from around $122,000 to $105,000, sparking about $19 billion in epic liquidations across the crypto market. On the anniversary, institutional analysts are revisiting the crash’s impacts and lessons on the crypto sector. Mark Connors, head of Risk Dimensions, pointed out the market topped out extremely quickly, with open interest near all-time highs, as numerous traders bet on Bitcoin’s continuation of its four-year cycle rally—ultimately suffering losses when the market reversed. Connors noted the Oct 11 Crash was driven primarily by the derivatives market, not shifts in on-chain demand, underscoring that leveraged positions can still dominate Bitcoin’s price movement in the short term. He added that leveraged trading such as perpetual swaps remains widespread, leaving the market primed for a similar crash. Chris Sullivan, co-founder of Hyperion Decimus, advised traders to reduce leverage and track metrics including open interest, funding rates, and market sentiment to identify risks of excessive one-sided bets. Connors also stated that investors’ understanding of market structure has improved, but Bitcoin’s "four-year cycle" as a price predictor is losing validity, with macroeconomic and political factors likely playing a larger role. (CoinDesk)