While Bitcoin maintains its stability, altcoins have experienced significant losses.

Rapid Decline in the Cryptocurrency Market

Charlie Erith, Founder of Wiston Capital, stated that the rapid cryptocurrency sell-off on October 10 significantly affected altcoins. In particular, tokens other than Bitcoin, Ethereum, and stablecoins lost approximately 33% of their value. During this process, nearly 18.7 billion dollars worth of liquidations occurred.

According to Erith, approximately 560 billion dollars (or 13.1%) was wiped off the total cryptocurrency market value since October 6. The sell-off on October 10 developed based on critical signals in the market. One of the initiating factors for this situation was former President Donald Trump’s threat of an additional 100% tariff on Chinese imports.

Bitcoin's Performance and Market Observations

Erith emphasized that he has been watching Bitcoin's 365-day exponential moving average. He noted that Bitcoin's performance is an important indicator for understanding market dynamics, and additionally, he is tracking Bitcoin dominance and market breadth. In the recent decline, Bitcoin exhibited notable stability, suffering less damage compared to altcoins.

Regarding Bitcoin, Erith stated, "Its behavior was largely as expected." Bitcoin experienced a decline but managed to remain in a long-term upward trend. The significant technical damage suffered by altcoins positively impacted Bitcoin’s market share.

Market Dynamics and Future Expectations

Erith stated that the market's liquidity orientation is strong and that the increase in Bitcoin dominance should continue. However, he emphasized that caution is needed regarding altcoins. Staying above Bitcoin's 365-day average indicates that market resilience is supported. A breakdown below this level could signal new selling pressure.

Taking volatility into account, Erith mentioned that the VIX (the market's fear index) has risen and that historically, when volatility peaks, better buying opportunities arise. Erith expressed that he prefers to stay invested but avoid using leverage. He also added that he will continue to watch for existing signals to stabilize before expecting increased interest.