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One Year After the "1011 Crash": Crypto Market Risks Persist, Derivatives Leverage Could Still Trigger the Next Wave of Liquidations

PANews October 10 news, according to CoinDesk, the high leverage and crowded trading risks exposed by the October 2025 crypto market crash still persist, and the market may still see similar events again. Since last year's epic "1011 crash," Bitcoin, shortly after hitting an all-time high of about $126,000, quickly fell from about $122,000 to $105,000, triggering about $19 billion in liquidations across the crypto market. Mark Connors, head of Risk Dimensions, said the market top formed extremely quickly at the time, open interest was near record highs, and a large number of traders bet that Bitcoin would continue its four-year cycle rally, ultimately leading to losses when the market reversed. The crash was mainly driven by the derivatives market rather than changes in on-chain demand, showing that leveraged positions can still dominate Bitcoin's price movements in the short term.

PANews October 10 news, according to CoinDesk, the high leverage and crowded trading risks exposed by the October 2025 crypto market crash still persist, and the market may still see similar events again. During last year's epic "1011 crash," Bitcoin quickly fell from about $122,000 to $105,000 shortly after hitting an all-time high of about $126,000, triggering about $19 billion in liquidations across the crypto market.

Mark Connors, head of Risk Dimensions, said the market top formed extremely quickly at the time, open interest was near record highs, and a large number of traders bet that Bitcoin would continue its four-year cycle rally, ultimately leading to losses when the market reversed. The crash was mainly driven by the derivatives market rather than changes in on-chain demand, showing that leveraged positions can still dominate Bitcoin price movements in the short term. He said leveraged products such as perpetual contracts have not disappeared, and the market still has the potential for another event similar to "October 10."

Chris Sullivan, co-founder of Hyperion Decimus, advised traders to reduce leverage and pay attention to indicators such as open interest, funding rates, and market sentiment to identify the risk of excessive one-sided bets in the market. Connors also said investors' understanding of market structure has improved, but the effectiveness of Bitcoin's "four-year cycle" as a price prediction indicator is declining, and macroeconomic and political factors may play a greater role.

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