Crypto Market Faces Sharp Downturn, Experts See Resilience
The crypto market is in a deep bear phase, but experts say it is more manageable than in 2022. Dragonfly Managing Partner Haseeb Qureshi called this “the easiest bear market I’ve ever seen.” His comments came after October’s $19 billion liquidation event. Traders are still recovering from the heavy losses during this historic downturn.
Haseeb responded to concerns from AltLayer Founder YQ, who noted that some veteran investors have lost faith in Web3. YQ pointed to weak liquidity, fading narratives, and market manipulation in small-cap tokens as key issues. He questioned whether many Web3 projects truly create value or only survive on speculation.
Haseeb reminded the community of the 2022 crisis when Luna, 3AC, FTX, Genesis, BlockFi, and NFTs collapsed. He said that wave felt like a “house of cards” and led to bank failures, stablecoin depeggings, and regulatory pressure. Compared to that, today’s market feels “breezy.”
October Liquidations Trigger Market Shock
On October 10, the crypto market suffered its largest-ever liquidation event. More than $19 billion in leveraged positions were wiped out within 24 hours. This crash was nine times greater than the February 2025 correction and over 100 times larger than the March 2020 meltdown.
The sell-off followed U.S. President Donald Trump’s announcement of 100% tariffs on Chinese imports and potential export controls on critical technology. These moves triggered panic selling and sharp liquidity drops, forcing rapid position liquidations.
- Bitcoin plunged 14% to $104,782.88, down from a high above $126,000.
- Ether fell 12.2% to $3,436.29.
- Altcoins saw deeper losses: HYPE down 54%, DOGE down 62%, AVAX down 70% before a slight rebound.
Market Fundamentals Remain Strong
Despite price declines, Haseeb highlighted that crypto fundamentals are healthy. He said, “Prices have gone down, but fundamentals are great. Crypto is working.” He cited strong DeFi protocol performance and increased crypto integration with traditional finance as signs of resilience.
This contrasts sharply with the 2022 market collapse, which involved major failures and regulatory crackdowns. Haseeb’s view emphasizes improved network health and transaction volumes.
However, some in the community debate whether the market is in a bear phase or a lengthy correction. This debate continues as traditional assets like gold and stocks reach new highs.
Current Market Data
- The global crypto market cap is $3.28 trillion, down 5.08% in 24 hours (CoinMarketCap).
- Trading volumes rose 32.48% to $229.06 billion amid higher volatility.
- Bitcoin trades at $97,425.65, down 4.60% in one day.
- Ethereum trades at $3,176.81, falling 8.92% daily.
