The crypto market begins the week on firmer ground, supported by cautious optimism. Bitcoin appears to have absorbed recent volatility, while improving liquidity conditions are beginning to reawaken interest in altcoins.
Global markets balanced optimism over potential US rate cuts with concerns about slowing growth. Falling yields and renewed liquidity expectations offered a constructive backdrop for digital assets, but uneven data and cautious sentiment kept traders selective.
Following a historic US$19B liquidation event, digital asset markets are cautiously stabilising. Renewed institutional inflows and improving liquidity suggest sentiment may be turning a corner.
With official U.S. data still suspended amid the ongoing government shutdown, investors relied on sentiment surveys and central bank signals to gauge direction. Despite the uncertainty, crypto markets steadied, supported by firm ETF inflows and renewed institutional participation.
A 100% U.S. tariff threat on Chinese imports triggered cascading sell-offs across overleveraged crypto markets, wiping out more than US$19B in positions during the largest liquidation in history.
The 10 October crypto crash erased over US$19 billion in a single day, as extreme leverage and thin liquidity turned a routine sell-off into chaos. The event revealed how overstretched positions and speculative trading amplified volatility across the entire market.
