The September 11 cryptocurrency crash is unlikely to have any fundamental long-term consequences, as it was caused by a combination of technical factors. This is what the authors of the Kobeissi Letter declared.
It’s official:
Crypto just experienced its BIGGEST liquidation event in history with 1.6 MILLION traders liquidated.
Over $19 BILLION in leveraged crypto positions were liquidated in 24 hours, 9 TIMES the previous record.
Why did this happen? Let’s explain.
(a thread) pic.twitter.com/dHbkfNjrVs
– Kobeissi Letter (@KobeissiLetter) October 11, 2025
The market collapse triggered a cascade of liquidations, with daily volume reaching a record $19.3 billion. For the first time in history, the leading cryptocurrency recorded a daily candle at $20,000.
Among the factors behind the decline of digital assets, analysts cited “excessive leverage and risks”, as well as a statement by US President Donald Trump regarding the imposition of 100% tariffs on imports from China.
Furthermore, the Head of State issued his message after the closure of traditional markets and reduced liquidity created a favorable environment for increased volatility.
Experts also noted a strong bias toward long positions in liquidation volume. On most major exchanges, except Bitfinex, the share of long positions exceeded 90%.
Analysts say the market selloff began about an hour before Trump’s first threats toward China. The president’s statement accelerated the decline during what was likely a correction already underway.
“We believe that this crash was caused by a combination of several sudden technical factors. It does not have fundamental long-term consequences. A technical correction was long overdue. We are confident that a trade deal will be reached and that the cryptocurrency remains strong. We are optimistic,” they concluded.
The “Trump factor” and sentiment
Santiment analysts also believe that the reasons for the market decline cannot be traced solely to Trump’s statement. According to them, retail traders rushed to find a single event as a factor in the crash, which is only a sign of “typical rationalizing behavior.”
However, in the short term, trade relations between the United States and China will play a key role in crypto traders’ sentiment, experts agreed. Positive news could increase risk appetite, while negative backdrop could lead to “Bitcoin below $100,000” predictions.
Meanwhile, the Cryptocurrency Fear and Greed Index fell to 24 points, despite reaching 74 a week ago. The current value signals “extreme fear” in the market.
Santiment noted that the decline of the leading cryptocurrency occurred in sync with the stock market. During turbulent times, traders often turn to tangible assets like silver or gold. Precious metals continued to rise.
“Cryptocurrencies like Bitcoin are not immune to macropolitical upheaval. Although many view them as alternative or fringe assets, they remain highly susceptible to risk appetite. Like it or not, Bitcoin behaves more like a risk asset than a safe haven in times of national tension,” the analysts concluded.
When will growth resume?
The decline in the cryptocurrency market could actually mean the start of an uptrend, believes cryptocurrency trader Alex Becker.
According to him, the sharp correction was partly due to “unprecedented impatience” among investors in recent weeks.
“I think selling now might be the stupidest thing you can do,” he noted.
Crypto analyst Benjamin Cowen also optimistically assessed Bitcoin’s prospects, pointing out that digital gold has regained its 60% dominance.
Great liquidation stunt sent yesterday #BTC a domination exceeding 60%.
I still think in the short term it continues to climb pic.twitter.com/JCZ0O6OztN
–Benjamin Cowen (@intocryptovere) October 11, 2025
“It’s time to move on to the next phase of Bitcoin’s growth” – declared Samson Mow, founder and CEO of Jan3.
Economist Timothy Peterson cautiously suggested in a commentary for Cointelegraph that cryptocurrency could enter a “cooling period.” Digital gold will continue its upward movement in three to four weeks.
“But perhaps at a slower pace than before,” he added.
As CryptoQuant reports, Bitcoin retains growth potential. Trader Peter Brandt identified a target of $185,000 as an outlook. Analyst Frank Fetter believes that the overbought zone for the leading cryptocurrency will be around $180,000.
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