The crypto market has just experienced one of its wildest weekends in history. After a record $19 billion liquidation wiped out overleveraged traders on October 11, Bitcoin and altcoins are already showing signs of recovery. Optimism returned as U.S.–China tensions eased, institutional investors started buying the dip, and analysts pointed to Bitcoin’s potential “golden cross” signal. Could this historic shakeout actually mark the start of the next big rally? Here’s what you need to know.
$19 Billion Wiped Out — The Largest Liquidation in Crypto History
On October 11, the crypto market experienced the biggest liquidation event in history — a staggering $19 billion was erased from open positions within hours. Bitcoin (BTC) plunged to around 96.000 € ($111,600), marking one of the sharpest and most violent downturns in months. The cascade of liquidations triggered as overleveraged long positions were wiped out, pushing major altcoins like Ethereum, Solana, and BNB down by double digits.
Analysts called it a “historic flush,” describing it as a complete reset of market leverage. CryptoQuant data showed this was the largest transfer of wealth in crypto derivatives ever recorded, with liquidation volumes surpassing even the May 2021 and August 2024 corrections. Despite the initial panic, long-term holders remained mostly unfazed, suggesting confidence in Bitcoin’s macro uptrend hasn’t been broken.
By Sunday night, signs of stabilization emerged. Bitcoin (BTC) recovered above 99.000 € ($115,000), and Ethereum (ETH) rebounded over 3.500 € ($4,100). Market sentiment began to shift from fear to cautious optimism. Historical patterns show that such large-scale liquidations often occur near local bottoms, as excessive leverage is flushed out and healthier accumulation phases follow.
“This was one of the largest asset wealth transfers in crypto history,” said Adam Kolesnik from Cointelegraph Markets Pro. “It effectively cleared out overleveraged traders, which can strengthen the next leg of the bull cycle.”
👉 Beginner takeaway: Large liquidations don’t necessarily mean the bull market is over. They often act like a market “reset button.” When too many traders borrow money to bet on rising prices, a sudden drop wipes them out — clearing the path for new growth based on real demand instead of risky leverage.
US–China Easing Tensions Boosts Global Markets and Crypto
Just when markets seemed ready to spiral into panic, a surprising diplomatic turn calmed the storm. Representatives from the United States and China signaled a willingness to ease the heated rhetoric around trade and resource control. The shift came after President Donald Trump announced an additional 100% tariff on Chinese imports, which initially sparked the selloff — only for him to later post a reassuring message on his platform, Truth Social:
In response, China’s Ministry of Commerce released a statement showing openness to negotiating over rare earth export controls, an issue central to global technology and semiconductor production. The tone of reconciliation was enough to cool fears of an extended economic confrontation.
The result was immediate. U.S. stock futures jumped overnight, and Bitcoin rebounded more than 5%, mirroring broader market optimism. Traders interpreted Trump’s and Xi’s messages as signals that neither side wanted a prolonged economic battle — a key relief after a week of uncertainty.
Market analysts noted that geopolitical sentiment has increasingly influenced crypto. As Bitcoin grows as a global macro asset, it reacts strongly to changes in trade policy and global risk appetite. Reduced tensions can restore confidence among institutional investors and drive inflows back into digital assets.
👉 Beginner takeaway: Crypto prices don’t just depend on crypto news — global politics can move them, too. When powerful countries like the U.S. and China show signs of cooperation, investors feel safer taking risks again, and that can lift both traditional markets and cryptocurrencies.
Ethereum, BNB, and Dogecoin Lead Market Rebound
After the record liquidation, the recovery began with altcoins taking center stage. By Monday, total crypto market capitalization had climbed back above $4 trillion, with several large-cap coins outperforming Bitcoin.
- Ethereum (ETH) jumped more than 6%, reclaiming 3.600 € ($4,175).
- Binance Coin (BNB) surged 5.3%, supported by strong trading volumes.
- Dogecoin (DOGE) rallied nearly 9%, boosted by social media buzz and renewed whale accumulation.
The rebound wasn’t just retail-driven. Institutional players were quick to act.
BitMine Immersion Technologies, one of the largest corporate Bitcoin holders, reportedly bought 12,700 BTC on the dip, adding over $1.2 billion worth of Bitcoin to its reserves. Meanwhile, MicroStrategy’s Michael Saylor echoed his long-term bullish stance with a simple post:
This accumulation added fuel to the recovery, showing that big players saw opportunity rather than danger. Analysts say these institutional moves help stabilize markets after panic-driven events, since they represent confidence in Bitcoin’s long-term fundamentals rather than short-term price swings.
Altcoins also benefited from this optimism. Solana, Cardano, and Chainlink rebounded by up to 10% each, while smaller tokens like MNT and ARB saw renewed speculative activity. Even synthetic assets such as Synthetix (SNX) climbed as investors began positioning for the next potential rally.
👉 Beginner takeaway: When large companies and funds buy Bitcoin or altcoins during a crash, it’s usually a strong sign of confidence. Institutions often take advantage of panic to buy cheaper — and their moves can signal that the worst might already be over.
Bitcoin Retests the Golden Cross — A Signal for the Next Bull Phase?
As markets recovered, analysts turned their attention to a key technical event on Bitcoin’s chart — the golden cross. This happens when Bitcoin’s 50-day moving average rises above its 200-day moving average, often signaling a shift from short-term weakness to long-term strength.
Historically, Bitcoin’s past golden crosses have preceded massive bull runs — +2,200% in 2017 and +1,190% in 2020.
According to Mister Crypto, a popular market analyst, Bitcoin is now retesting this formation. He explained that maintaining support above $115,000 could trigger another parabolic phase:
Chart data supports this optimism. The implied volatility of Bitcoin (BTC) — a measure of how much price swings are expected — spiked sharply following the liquidation but has since stabilized, a pattern that often precedes strong upside momentum. Analysts from Cointelegraph note that volatility compression after extreme liquidations tends to build energy for the next move.
The golden cross also carries psychological weight. Many retail investors see it as confirmation that the bull market is back on track. Combined with easing global tensions, renewed institutional accumulation, and a clean slate after record liquidations, the setup could be ideal for the next stage of the rally.
👉 Beginner takeaway: A “golden cross” is a chart signal that often marks the start of new bull trends. It means short-term prices are catching up to and moving above long-term averages — a sign that momentum is turning positive again.
Closing Thoughts
This week proved once again that crypto markets can turn from panic to optimism in just a few days. The $19 billion liquidation that sent shockwaves through the industry has already been followed by a powerful rebound fueled by easing U.S.–China relations, renewed institutional buying, and a technically bullish golden cross setup on Bitcoin.
Whether this marks the true continuation of the bull market or just a short-term bounce remains to be seen, but one thing is clear — market resilience is stronger than ever.
After history’s biggest shakeout, the crypto market appears ready to rise once again.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.mendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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