Emre Yumlu 
The crypto market witnessed a dramatic downturn last night, leaving investors rattled. Chinese analyst and former FTX community partner Beenson Sun shared his insights on what caused the sudden collapse and what might come next for the market.
A Crypto Crash Beyond Ordinary Liquidations
According to Sun, the latest market meltdown was far from a typical liquidation wave. In previous downturns, the total amount of liquidations usually ranged between $1–2 billion, but this time, the volume reportedly surged to ten times higher. He noted that several altcoins lost over 60% of their value within a few hours.
Sun emphasized that the event cannot be explained merely as a leverage wipeout. Instead, he believes major market makers deliberately pulled liquidity, triggering a deep and rapid price vacuum that led to the massive sell-off.
Liquidity Withdrawal Created a Market Void
Sun described the recent crash as even more severe than the sharp declines seen on March 12 and May 19 in previous cycles. “This round of leverage cleansing is the most extensive we’ve seen so far. The market bubble has fully deflated, and risk leverage has dropped to zero,” he stated.
He also suggested that U.S. stock markets could exhibit parallel movements, reacting to the same macro and liquidity pressures affecting crypto.
Long-Term Outlook Remains Positive
Despite the short-term chaos, Sun maintained an optimistic long-term view. He predicted a potential market recovery in the fourth quarter of 2025, as liquidity conditions and investor sentiment gradually improve.
The analyst concluded that while recent volatility has increased risk across the market, it may also present new opportunities for investors who remain patient and cautious.
This article does not constitute financial advice.
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