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- October 10th sell-off driven by leverage and automated trading caused major price drops.
- Stablecoin glitch intensified market panic but does not reflect blockchain weaknesses.
- Regulatory clarity and institutional adoption could stabilize the market and offer buying opportunities.
The rypto market has faced a sharp decline in recent weeks, with major cryptocurrencies like Bitcoin, Ethereum, and several altcoins experiencing notable drops. Investors are increasingly concerned about what triggered this downturn and when recovery might occur. Experts suggest a combination of technical failures and macroeconomic pressures are behind the recent turbulence.
What Triggered the October 10th Crash?
The crypto market crash began on October 10th with a sudden sell-off that prompted a mass liquidation of positions. This leverage-driven flush-out caused prices across the board to drop sharply. Market makers, who provide essential liquidity to crypto trading, were forced to reduce operations and sell more assets, amplifying the decline.
Software Glitch Sparks Panic
A software bug in the Athena USDE stablecoin on Binance intensified the crash. Normally pegged at $1, the stablecoin briefly plummeted to $0.65, triggering automated selling across millions of accounts. Crypto expert Tom Lee emphasized that the crash was driven by trading automation and leverage, not the blockchain networks themselves. He compared it to past financial system shocks, suggesting that this could be a buying opportunity for long-term investors.
Woaow! Explosive Interview with Tom Lee on CNBC
— TheInvestIQ 🇳🇬 🇨🇦 (@uzyrebranded) November 21, 2025
1. He admitted a “glitch” is responsible for selloff in the crypto world
2. He said $BTC might hit $77k
3. $ETH might hit $2500
4. $MSTR has hit lowest at current prices
5. Crypto will rebound faster than the decline.
I enjoy… pic.twitter.com/DDcuzqVO0Y
Broader Market Pressures
Macro factors also played a role. Concerns over AI overvaluation, tighter liquidity due to government shutdowns, and overall market uncertainty contributed to the sell-off. Austin Arnold from Altcoin Daily noted that Bitcoin’s fundamentals remain strong. With growing adoption and a limited supply, this dip could resemble early internet-era opportunities for strategic investors.
Also Read: Is Your WhatsApp Safe? Banking Trojan ‘Eternidade Stealer’ Now Hunting Brazilian Crypto Holders
Bitcoin currently trades between $70,000 and $100,000, indicating typical bear market behavior. Analysts point to the 200-week moving average, around $55,000–$60,000, as a potential safety floor. Looking ahead, market stability could improve with upcoming regulations like the Market Structure Bill, broader adoption of stablecoins by institutions, and government-backed investments in Bitcoin in countries such as Luxembourg and the Czech Republic.
In conclusion, while the crypto market is under pressure, experts view the current situation as a potential long-term opportunity for investors prepared for volatility. Recovery hinges on both technical fixes and regulatory clarity, offering hope that the market could rebound in the months ahead.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
