Haciyev Reşit 
The sharp price drop in the cryptocurrency markets on Friday was not just a short-term shock but also marked a fundamental structural shift in the industry. Singapore-based digital asset financial services provider Matrixport stated in its latest analysis that “the highly leveraged group of traders has almost disappeared, the market has been cleansed, and room has opened up for new long positions.”
Matrixport: “The Structure of the Crypto Market Has Completely Changed”
According to Matrixport’s report, the crash that occurred on the evening of October 10, 2025, triggered one of the largest liquidation waves in crypto history. The company commented:
“The structure of the market has completely changed. Overleveraged traders have been flushed out of their positions, and a healthier balance has begun to form. This situation is creating new opportunities for long-term investors.”
The report highlighted that before the downturn, there was a strong wave of optimism and accumulation of long positions, particularly in major cryptocurrencies such as Bitcoin and Ethereum, which led to a chain reaction of liquidations once the sell-off began.
“Room Has Opened for Long Positions”
Matrixport’s analysis emphasized that the fragility caused by excessive leverage has now been purged from the market:
“The sharp declines seen in major cryptocurrencies triggered a cascading effect, automatically causing numerous liquidations. This event has been recorded as one of the largest forced liquidation waves in crypto history. Excessive optimism and high leverage have been cleared out. Now, there is room for new long positions to be built. These signals are clearly visible in on-chain data.”
The report also noted that the market is currently in an ‘extreme fear’ phase, which could support the formation of a short-term bottom. According to data, around $20 billion worth of leveraged positions were liquidated on Friday night.
Of this amount, approximately $16 billion came from long positions. Some analysts believe the real figure may be much higher — possibly exceeding $100 billion when including off-chain exchanges and derivatives platforms.
Is a New Era Beginning in the Market?
Analysts suggest that while the current situation represents a painful short-term correction, it could lay the groundwork for a sustainable medium-term recovery. Matrixport’s strategy team noted that the negative funding rates in Bitcoin futures indicate that “the market has returned to a neutral state,” meaning new inflows are likely to be more balanced from this point onward.
This crash, they added, has contributed to the structural maturation of the crypto market. The clearing of excessive leverage has created a more stable foundation for long-term players.
The Market Is Reshaping
Matrixport’s assessment suggests that the recent volatility should be viewed as a “cleansing movement” in the crypto space. With short-term traders largely exiting the system, the market is now regaining a more organic equilibrium, and long-term investors are beginning to re-enter positions. This landscape is being interpreted as a “healthy bottom formation period” for Bitcoin, Ethereum, and other strong altcoins.
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