"October 10th Crash in the Crypto Market and Its Effects"

Critical Developments in the Cryptocurrency Market

Matt Hougan, Chief Investment Officer of Bitwise, evaluated the selling wave that occurred on October 10, 2023. Hougan stated that this crash was related to the recent threat by President Trump to impose a 100% tariff on Chinese goods.

Following the sales, it was reported that approximately $20 billion worth of leveraged positions were liquidated. During this process, Bitcoin lost up to 15% of its value.

Market Regulations and Behaviors

Hougan mentioned that the “three questions” test he developed to assess the crash examines systemic errors, market functioning, and investor behaviors. He added that Decentralized Finance (DeFi) platforms demonstrated resilience during this period, but also noted that Binance refunded approximately $400 million.

Emphasizing that there was no fundamental change in the markets, Hougan anticipates short-term disturbances related to liquidity.