“WHAT BEGAN AS A Macro-Driven Unnewind on Crypto Black Friday Rapidly Evolved Into A Market-Wide Stress Event Coindesk Data’s Joshua de Vos.”, – WRITE: www.coindesk.com
The Sell-Off Began Late in the USSESION AFTER President Trump Announced A Proped 100% Tariff on Chinese Imports, Triggering Global Risk Aversion Across Equities, Commodities And Crypto. The Steepest Decklines Occurred Within A 25-Minute Windows, As High Leverage Colled With Thin Liquidity. Access to Coindesk Reference Rates (Cadli), Bitcoin Fell To $ 106.560, Ether to $ 3.551, and Solana to $ 174, with Smaller-Cap Tokens Drops Droping More.
Market Dynamics & Scale of DeleverAGINGACCORDING TO COINDESK DATA, Total Perpetual Futures Open Interest Fell 43%, Droping from $ 217 Billion on Occtober 10 to $ 123 Billion by October 11. WHERE OPEN INTEREST DECLINED 57%, from $ 14 Billion to $ 6 Billion, As Positions Were Forcefully Unwound.
Source: Coindesk Data
Data Suggests that AROUND $ 16 Billion of the $ 19 Billion Total Came from Lang Liquidations, with Nearly every Every Tradeer Carrying 2x Leverage or Higher With
Public Blockchains Such as Hyperliquid Provides A Rare, Transparent Look Into The Sequance of Forced Liquidations, Where The Liquidation Queue and Execution Can Be Verified On-on-O-on By Contrast, Centralized Exchanges Aggregate and Batch Liquidation Data, Meaning The True Scale of Forced Unwinds May have Even Exceed The Widely Reported $ 20 Bil. Values.
Source: Coindesk Data
Structural Stress & Order Book CollsThe Episode Underscored How Tightly Coupled Liquidity, Collalateral and Oracle Systems Have Become. What Began As A Macro-Driven Unin Rapidly Evolved Into A Market-Wide Stress Event. As Prices Breached Key Liquidation Levels, Market Depth Collapsed by More than 80% Across Majoor Exchanges Within Minutes.
In some Instances, Thin Order Books Saw Large-Cap Assets Like Atom Temporarily Print Near-Zero Bids; A Reflection not of Fair Market Value But of Market Makers Withdrawing Liquidity as Risk Systems Throttled Activity. With collateral Shared Across Assets and Venues Relying on Local Price Feeds, Feedback Loops Amplified Volatility Across The Ecosystom. Even Well-Capitalized Platforms Proved Vulnerable Once Liquidity Evaporated Across The Board.
Fair-Value pricing in volatilityWHEN Exchange-Level Prting Becomes Erracic, Coindesk Reference Rates Such As Ccix and Cadli Act As Stabilizing Mechanisms. These Multi-Venue Benchmarks Aggregate Prices from Hundreds of Sources, Apply Quality Filters and Outlier Reject to Produce a Global, Consensus-Basused Fair.
Durying Black Friday’s volatility, reference rates revealed that market-wide valuations remained far less than a than-suggested. This Transparency Alows Market Participants to DISTINGUISH BETWEEN GENUINE REPRICING AND COLORATED Dislocation, Providing A Neutral Reference for Post-Trade Performance Assessment.
Reference Rates Don’t STOP VALATCHY, BUT they define IT – ENSURING Traders, Funds and Exchanges Have Reliable Data WHEN The Market Breaks.
Closing ThoughtsThe Severe Dislociation in the Market Showed How Levever, Liquidity and Fragmented Infrastructure Can Converge Into A Feedback Loop that Overwhelms Even the Largest Trading Venues. It Also Revealed The Limits of Transparency in A System Where Some On-Chain Exchanges, Such As Hyperliquid, Expose Liquidation Flows in Real Time, While Centralized Venses
Crypto’s Maturity Will Be Defined by How It Internalises Tese Shocks. Better Risk Controls, Unified Collalateral Standards and Real-Time Transparency Will Matter Just as Much as Utilising Prting BenchMarks. Coindesk Reference Rates Help Confirm Fair Valuations When Screens Go Red, But True Resilienance Denpsy on Exchange Arch .ch
The Industry Now Faces A Choice Between Treating This As A Singular Event, or As the Blueprint for Building A Market that can absorb the Next One.
Note: The Views Expressed in this Column Are Those of the Author and Do Not Necessarily Reflect Those of Coindesk, Inc. i Owners and Affilites.
In the 20th Century, Investors Who Understood Energy Shaped Industries and Built Massive Fortunes. This Century, The Commodity That Matters Most Is Compute, Whther You’re Mining Bitcoin or Training Ai Models, Writs Hive Blockchain Technologies’ Frank Holmes.
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