Crypto traders say “something broke” after in October, the data says the market really did change

Following a historic liquidation event on October 10, triggered by macro headlines and Trump's tariff announcement, the crypto market entered a new, more cautious regime characterized by significantly thinner liquidity, reduced leverage, and weaker institutional support from Bitcoin ETFs. Analysts refer to this event as "The Great De-Leveraging," where over $19 billion in leveraged positions were wiped out, causing price action to become disconnected from fundamental sentiment due to forced selling into thin order books. Venue-specific issues, such as collateral dislocations on exchanges like Binance, further fractured market confidence. Two months later, liquidity remains depressed, open interest has not fully recovered, and the market is more susceptible to macro shocks, leading traders to feel that the underlying market mechanics have fundamentally changed, even if prices appear stable.

(Source：CryptoSlate)