October 10 of Crypto 10 looks more like a stress test than a regime change, Bitwise Chief Investment Officer Matt Hougan wrote on his October 14th Memo.
Hougan associated the sell-off with a late-friday post from President Trump threatening 100% tariffs on Chinese goods; In the equities shut, he wrote, entrepreneurs funnel reacted to the always open crypto market. As the prices slip, he said, the highly leveraged positions were fluid in order, deepening the move.
With his tally, approximately $ 20 billion was eradicated -the greatest like not to avoid crypto history -with Bitcoin up to 15% before rebounding near $ 115,000 on Monday. Some nobles fell into further intraday, including Sol, who said he had briefly dropped nearly 40%.
From there, Hougan focuses on whether something is broken. He wrote that channel checks throughout the carers and liquidity shows showed losses but no one had collapsed to major players such as fence funds or well -known market makers – a factor that he thought was quickly dropping.
He then reviewed the “plumbing market.” According to the memo, decentralized areas including Uniswap, Hyperliquid, and Aave reported normal operation by volatility, while some centralized platforms stumble; Hougan said Binance had been refunding businessmen for nearly $ 400 million. Taken, he argued, the crypto infrastructure was performed as well – if not better than – traditional market could have a similar strain.
The investor’s behavior is the final say. Hougan wrote that his inbox remained unusually silent; Media and social feeds are vibrant, but institutional clients sit more in their hands. In his view, that calm reduced the odds of a cascading that could not relax and helped the market reset quickly once the policy tone was cooled.
Because none of the crypto foundations have changed-no security violations, there is no failure of basic technology, and there is no damage to the backdrop of regulation-Hougs has finished that the episode does not change the long-term path.
He points to both structural drivers that he emphasizes throughout the year: clearer rules, increasing institutional allocations, growing role of stablecoins with the payments and accelerated tokenization of traditional properties.
Years to this day, he wrote, Bitcoin reached 21% and the Bitwise 10 large CAP crypto index reached 22%.
Near the term, he expects thinner liquidity as market manufacturers are re -regulating – conditions that can increase moves in either direction – before returning attention to the foundations.
