The Largest Liquidation in History: $19 Billion Evaporated

On the night of October 11, 2025, crypto markets witnessed the largest leveraged position liquidation in history. U.S. President Donald Trump’s threat to impose new and high tariffs on Chinese imports suddenly ended global risk appetite and created a massive shock wave in financial markets. Cryptocurrencies were also heavily affected, with over $19 billion in leveraged positions liquidated in just hours. This massive liquidation left many investors in difficult situations while painfully highlighting the market’s vulnerability due to leverage once again.

Bitcoin (BTC) experienced a sharp drop, spiking down from $122,000 levels to below $103,000.

Up to 70% Value Losses in Altcoins on October 11 Night

On the night of October 11, when the record $19 billion liquidation occurred, alongside Bitcoin’s sharp drop, altcoin markets saw massive losses of up to 70%. Particularly high-leverage altcoins with smaller market caps compared to Bitcoin melted away in this panic selling wave. For example, popular altcoins like XRP and Dogecoin (DOGE) experienced significant value losses. The total crypto market cap dropped by approximately $800 billion in just a few hours, falling from $4.3 trillion to $3.64 trillion. These sharp declines once again reminded investors of the risks of leveraged trading and the devastating impact of market shocks on altcoins.

Many Altcoins Dropped to Their Historic Lows

2025 was like a winter season for many altcoins. As a result of deep market-wide corrections and investors shifting toward Bitcoin (increasing “Bitcoin Dominance”), numerous altcoins approached or retested their all-time lows. This was particularly devastating for projects that had inflated with speculative buying during the 2021 and early 2024 bull runs.

Argentina President Scandal: LIBRA Coin and 99% Collapse

In February 2025, Argentine President Javier Milei’s social media post supporting a “meme coin” project called LIBRA caused a major scandal in the crypto market. The coin, associated with the president’s dog’s name, rapidly rose in the first hours with presidential backing, reaching a $4.5 billion market cap. However, immediately after this rapid rise, doubts about the project’s reliability and Milei’s deletion of his posts led to LIBRA’s value collapsing by nearly 99% in hours, dropping to $200 million. This event exposed the extremely speculative nature of meme coin projects and the manipulative influence of political figures, causing many investors to suffer massive losses.

Ethereum Spiking Down to $1,380

The general market correction that began after Bitcoin reached historic highs deeply affected Ethereum (ETH), the largest altcoin. During the sharp price movements in 2025, Ethereum experienced a steep drop to $1,380 levels at one point.

Having shown more resilient performance earlier in the year with less loss relative to Bitcoin, Ethereum retreated to these important psychological levels amid overall market uncertainty and selling pressure. This drop was a concrete example of how panic in the market and macroeconomic factors can impact even the strongest projects.

Fear Index Hit Its Lowest Level in the Last 3 Years

The Fear and Greed Index, which measures sentiment in crypto markets, dropped to 9 amid all these turbulences, reaching one of the lowest levels in the past three years. Values close to 0 on the index represent “Extreme Fear,” while values close to 100 represent “Extreme Greed.”

The index falling to 9 indicated that investors were in great panic and uncertainty, completely avoiding risk, with intense selling pressure dominating the market. Although this level is typically considered close to market bottoms, it was striking data revealing how worn investor psychology was and how shaken confidence in the market had become.

An Unforgettable Year in the Crypto Markets

This chain of events proved that the past year was an unforgettable and lesson-filled period for crypto markets. Excessive leverage, macroeconomic uncertainties, and sudden collapses triggered by political events forced investors to rethink the importance of risk management and market sentiment.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post What Happened in Crypto Markets in the Last Year? appeared first on Coin Engineer.

A Red November and the First Signals from Analysts

This year, Bitcoin closed November with a pronounced red candle, reflecting a downturn in overall sentiment. Yet the fact that BTC held the 90,000-dollar region suggests that bullish momentum has not entirely vanished. Stabolut CEO Eneko Knorr notes that December and January may play a decisive role in determining whether the market is preparing for a potential “super cycle.”

A similar tone is echoed by Bakkt International President Phillip Lord, who argues that recent volatility does not imply the end of the bull market. In his view, the pullback resembles a mid-cycle shakeout rather than a structural breakdown. Despite the Federal Reserve slowing rate cuts and equities showing signs of fatigue, sustained ETF inflows and continued institutional positioning indicate that the bullish framework remains intact. Lord adds that Bitcoin’s ability to reclaim levels above 100,000 dollars will likely depend on maintaining the 83,000 to 86,000-dollar support range. So how about the rally?

Is a Rally Possible in Early 2026?

Market liquidity dynamics may hold the key to Bitcoin’s direction heading into the new year. Liquidity specialist Michael Howell highlights that BTC’s price behavior has become increasingly correlated with global liquidity trends rather than strictly following the four-year halving cycle. Studies placing the correlation between Bitcoin and the Global Liquidity Index in the 0.83–0.94 range underscore how significant macro liquidity has become for crypto assets.

According to Howell, the sharp liquidity peak observed in November provides important context. Bitcoin’s decline ahead of this turning point aligns with historical patterns, as BTC often leads liquidity trends by several weeks. This suggests that the current price weakness could be reflecting expectations of a coming liquidity pullback across global markets.

Still, Howell points to the possibility of another liquidity expansion around the second quarter of 2026. A slowdown in U.S. monetary contraction, rising excess bank reserves, any supportive intervention from the Federal Reserve, or stronger stimulus efforts from China could all shift conditions in favor of risk assets. Should these catalysts emerge, Bitcoin may find the environmental support needed to regain upward momentum going into 2026.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Is a Bitcoin Year-End Rally Possible? appeared first on Coin Engineer.

Bitcoin dominance, a metric measuring how much of the crypto market’s total value belongs to BTC, recovered as the asset reached its six-figure all-time high on December 5. Meanwhile, most altcoins failed to match BTC’s gains.

According to TradingView, Bitcoin dominance rose by 4.4% over the past 24 hours, climbing to 57% as the asset hit a record $104,000 on December 5. Bitcoin’s market share had dropped from 61.8%, a three-and-a-half-year high on November 21, to a low of 54.7% on December 4, before staging its latest rebound.

Analyst Income Sharks, in a post on the X platform on December 5, commented: “It’s almost as if BTC was jealous that altcoins were getting all the attention and wanted to remind everyone that it’s still the king.”

Bitcoin Dominance

What is The Current Status of The Fear and Greed Index?

The Bitcoin Market Fear and Greed Index, which analyzes market sentiment, is currently at an “extreme greed” level of 84. However, this index spiked to 94 on November 22, when Bitcoin reached its all-time high of $99,000, marking the highest level since December 2020. Social sentiment has also increased; according to Google Trends, searches for Bitcoin on December 5 saw the biggest surge of the past week.

Worldwide searches for ‘Bitcoin’ on Google. Source: Google Trends

Short Positions

Meanwhile, according to CoinGlass, $132 million worth of short positions were liquidated over the past four hours. Industry executives and analysts are celebrating Bitcoin’s “100K Day.” Coinbase CEO Brian Armstrong said, “If you had bought $100 worth of Bitcoin when Coinbase was founded in June 2012, it would now be worth about $1,500,000.” Armstrong also added, “If you had kept your $100 in cash, you would only be able to purchase about $73 worth of goods today.”

“Bitcoin is the best-performing asset of the last 12 years, and it’s still early days.”

---

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Bitcoin Dominance Rises to 57% as BTC Reaches $104,000 appeared first on Coin Engineer.

In simple terms, when fear dominates, market participants tend to fear losing their capital. When they are concerned about market stability and the value of token assets, they may sell their assets. Additionally, this situation can lead some investors to start short selling these assets to profit from the fear sentiment.

Whether it’s due to macroeconomic factors (inflation, recession, economic crises, or geopolitical factors) or asset-specific factors (such as a drop in the value of specific assets like oil and gas prices) or negative press about a crypto project causing a drop in token prices, fear is generally associated with falling markets or asset values.

Greed

Conversely, when greed dominates, market participants tend to accumulate more assets and try not to miss out on potential gains. This happens when markets and assets are on an upward trend. Greed is often accompanied by another type of fear known as FOMO (Fear of Missing Out). In this scenario, market participants fear missing out on potential gains.

Fear and Greed Index

The original Fear and Greed Index, a significant market indicator developed by CNN Money, aimed to measure how these two human emotions affect the stock market. The index’s purpose was to determine whether specific markets or assets were trading above their supposed values due to greed or below their supposed values due to fear.

The Fear and Greed Index is presented as a spectrum ranging from extreme fear to extreme greed.

While CNN’s Fear and Greed Index relies on various factors to measure fear and greed in stock markets, some of these factors are not directly applicable to crypto markets, which are unique in many ways. This has necessitated the development of a Fear and Greed Index specifically tailored to cryptocurrencies.

You might like it:What is Unibot(UNIBOT)? What Does It Do?

How is the Crypto Fear and Greed Index Calculated?

Subsequently, various crypto indices, like Alternative.me, have been developed using weighted data sources such as:

• Volatility (25%): Current market volatility and average values compared to the last 30 and 90 days; higher volatility indicates higher fear.
• Market momentum/volume (25%): Comparing buying and selling volumes over the last 30 and 90 days; higher buying volumes compared to the recent past indicate higher greed.
• Social media (15%): Interest in Bitcoin on social media, volume of social media interactions, and general sentiment.
• Surveys (15%): Gathering opinions of users and investors.
• Dominance (10%): An increase in Bitcoin dominance usually signals fear.
• Trends (10%): Google search trends.

You can present your own thoughts as comments about the topic. Moreover, you can follow us on Telegram and YouTube channels for the kind of news.

The post Fear and Greed Index appeared first on Coin Engineer.

• When investors are positive and optimistic we call it a bullish sentiment and prices tend to rise.
• On the other hand, when investors are negative and fearful, it’s called a bearish sentiment and prices tend to drop.

To make better decisions, investors combine market sentiment with other analysis methods.

So, What Can We Look Out For?

Crypto Hype: Sometimes, a particular cryptocurrency gets a lot of attention and excitement. Influencers of major crypto projects can create this hype. You can gauge the hype by looking at searches on trends. If a cryptocurrency is getting a lot of searches, it indicates high investor interest.

Crypto-Related News: Stay updated with the latest news from trusted crypto news platforms. Major events like a country banning crypto or a big exchange failing can have a negative impact on the market sentiment. On the other hand, news about more countries accepting cryptocurrency or big investors investing heavily can create a positive sentiment.

Social Media Pages: Check out social media pages and communities related to a cryptocurrency project. Platforms like Telegram, Discord, Twitter and Reddit can provide valuable insights into what people think about a project.

There are also sentiment indicators that can help you gauge market sentiment. Investors focus on famous Bitcoin Indicators to predict future crypto trend.

Bitcoin Fear and Greed Index: This indicator measures the fear and greed levels in the Bitcoin market on a scale of 0 to 100. It has been effecting by market volatility, trading volume, social media trends and dominance. 0 suggests extreme fear, 100 indicates extreme greed.

Bull and Bear Index: This indicator analyzes social media conversations to determine how bullish or bearish people are feeling. A reading of 0 indicates strong bearish sentiment, while a reading of 1 suggests strong bullish sentiment.

You can present own thoughts as comment about the topic. Moreover, you can follow us on Telegram and YouTube channels for the kind of the news.

The post What Is Crypto Market Sentiment? appeared first on Coin Engineer.