TechFlow news, October 13 — Regarding the sudden crypto market flash crash that occurred in the early hours of October 11 Beijing time, Chloe (@ChloeTalk1), author of the HTX DeepThink column and researcher at HTX Research, analyzed that Trump's resumption of tariff policies triggered global risk-averse sentiment. Bitcoin began a cliff-like decline at 5 AM, leading to a total liquidation of $19.1 billion across the market within just a few hours—the largest single-day liquidation in crypto market history. Volatility spiked sharply in U.S. equities and yen markets, with Bitcoin becoming the first high-risk asset dumped during the Asian trading session. Institutional and quantitative funds opted for rapid de-leveraging, while USDT premium rebounded to 1.002, indicating accelerated capital outflows from exchanges in the short term. Meanwhile, the VIX fear index surged 22% intraday, and the U.S. 10-year Treasury yield breached 4.8%, as tightening liquidity triggered chain-wide resonance, becoming the catalyst that overwhelmed highly leveraged systems.
Deribit options data shows put skew for BTC and ETH rising to an 18-month high, with implied volatility soaring to 82%, reflecting extreme market risk aversion. Traders expect further downside risks in the short term, but long-term position accumulation has begun to return. Bitcoin’s RSI dropped to 28, technically nearing oversold territory, prompting some capital to cautiously enter for bottom-fishing. According to options positioning structure, key support levels for late October are concentrated around $92,000; a break below this zone could trigger a new round of hedging sell pressure. The $2,800 support level for ETH is similarly critical; losing it would further intensify capital outflows from the altcoin sector.
Structurally, this liquidation event was not merely a liquidity crisis but also a watershed moment in the industry cycle, where “non-fiat stablecoins + high LTV collateral” emerged as the core variable enabling risk contagion. The systemic fragility of assets like USDe has been fully exposed. The concentrated withdrawal of institutions and market makers revealed structural imbalances: liquidity extracted by giants, and leverage mechanisms turning self-destructive.
Chloe also pointed out that extreme panic often incubates market bottoms. Historically, similar liquidation events (such as the March 12 crash in 2020 or the FTX collapse in 2022) became starting points for the next bull run. While current conditions may still not represent the optimal entry point, from a cyclical perspective, the market is now far closer to its bottom than to its top.
Note: This content is not investment advice, nor does it constitute any offer, solicitation, or recommendation regarding investment products.
