Galaxy Research has highlighted significant volatility in the cryptocurrency market following a flash crash on October 11 that erased over $190 billion in leveraged positions. The crash saw Bitcoin plummet from a record high of $126,300 on October 6 to as low as $107,000, while Ethereum fell from nearly $4,800 to $3,500. The downturn was attributed to high leverage, shallow order books, and macroeconomic factors, with exchange auto-deleveraging intensifying the sell-off.
Despite a partial recovery, market sentiment remains fragile amid mixed macroeconomic signals and investor fatigue. Galaxy Research maintains a cautiously optimistic outlook on digital assets, particularly Bitcoin's role as a store of value, and notes potential growth in tokenization and positive U.S. regulatory developments.
Crypto Market Faces Volatility as 'Uptober' Hopes Dim
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