Friday’s sell-off in the financial markets also affected cryptocurrencies. Although US President Donald Trump was the trigger, the real causes lie deeper—in a combination of technical factors, low liquidity, and investor nervousness. The cryptocurrency market has once again shown how quickly sentiment can change when macroeconomic uncertainty meets overleveraged positions.
Bitcoin created a triple top
Bitcoin failed to capitalize on its third attempt to break through to all-time highs (ATH) and technically created a so-called triple top – a strong bearish signal from a technical analysis perspective. Friday, October 10, 2025, brought record liquidations worth $16.7 billion, of which $4.7 billion was attributable to long Bitcoin positions alone. This was probably the largest forced closure in the history of cryptocurrencies, which also significantly affected investor psychology.
The price subsequently rebounded from support around $102,000, close to the 200-day moving average. However, how long this rebound will last remains to be seen. According to analysts at Glassnode, more experienced traders are focusing on protecting capital and limiting exposure in the derivatives markets.
What can we learn from the crash?
The combination of the so-called “black swan” and market fragility has come to the fore. Some altcoins on smaller exchanges have virtually lost their value, showing how vulnerable the entire crypto ecosystem remains. Therefore, it is crucial to focus on assets with higher resilience—quality stocks, gold, or bitcoin itself. Although these fluctuate, they do not fall by tens of percent in a single day.
According to data from Glassnode, liquidity is the fundamental protection against such declines. Investors should consider it one of the main parameters when building a portfolio—because without it, even a minor correction can turn into a disaster.
