One year after the October 11 crash: the major lesson about leverage and the end of the traditional cycle.
It has been exactly one year since one of the most memorable episodes in recent market history: the October 11 plunge, when $BTC Bitcoin abruptly fell from around $122,000 to $105,000 shortly after reaching a record high near $126,000.
That move not only brought the euphoria of the moment to an abrupt halt, but also triggered a historic cascade of liquidations totaling $19 billion on derivatives platforms.
Looking back at what happened, institutional research firms agree on one fundamental conclusion: the decline was not driven by deteriorating fundamentals or users leaving the chain, but by a massive leverage trap. A large number of traders aggressively bet that the four-year bull cycle would continue in a straight line, pushing open interest to unprecedented levels.
When the price experienced its first technical rejection, automatic liquidations created a domino effect that dragged prices down, leaving traders using borrowed funds no opportunity to react.
This anniversary offers some very valuable lessons for trading today. The widespread use of perpetual contracts continues to dominate short-term fluctuations, meaning the market can repeat sharp corrections whenever positions become excessively concentrated on one side. At the same time, analysts note that the rigid idea of the four-year cycle as an infallible predictor has lost validity, as Bitcoin now moves in step with central bank liquidity, inflation, and geopolitical shifts.
To protect capital in this environment, it is essential to monitor key indicators such as funding rates and open interest before entering the market…
#noticias
It has been exactly one year since one of the most memorable episodes in recent market history: the October 11 plunge, when $BTC Bitcoin abruptly fell from around $122,000 to $105,000 shortly after reaching a record high near $126,000.
That move not only brought the euphoria of the moment to an abrupt halt, but also triggered a historic cascade of liquidations totaling $19 billion on derivatives platforms.
Looking back at what happened, institutional research firms agree on one fundamental conclusion: the decline was not driven by deteriorating fundamentals or users leaving the chain, but by a massive leverage trap. A large number of traders aggressively bet that the four-year bull cycle would continue in a straight line, pushing open interest to unprecedented levels.
When the price experienced its first technical rejection, automatic liquidations created a domino effect that dragged prices down, leaving traders using borrowed funds no opportunity to react.
This anniversary offers some very valuable lessons for trading today. The widespread use of perpetual contracts continues to dominate short-term fluctuations, meaning the market can repeat sharp corrections whenever positions become excessively concentrated on one side. At the same time, analysts note that the rigid idea of the four-year cycle as an infallible predictor has lost validity, as Bitcoin now moves in step with central bank liquidity, inflation, and geopolitical shifts.
To protect capital in this environment, it is essential to monitor key indicators such as funding rates and open interest before entering the market…
#noticias