On October 11, crypto analyst released a market analysis stating that today we witnessed the largest liquidation event in the history of crypto assets, which can only be described as a total flash crash. Approximately $19.3 billion in positions were liquidated within a day, affecting around 1.66 million traders. Many assets fell sharply during the day and then saw some rebounds, but the scale of this dumping raised serious questions about where the market stands in the broader cycle.
By mining historical data, the most recent similar event was during the bull tail period at the end of 2021, when Bitcoin had just reached its peak of $69,200. The flash crash in December 2021 wiped out over 24% of the market value in a single day K-line, and this event later proved to be the beginning of the subsequent bear market. Today's Bitcoin daily K-line shows a maximum fall of about 17%, which is comparable in scale and context to 2021.