{"id":4107,"date":"2025-10-21T19:39:48","date_gmt":"2025-10-21T16:39:48","guid":{"rendered":"https:\/\/evercodelab.com\/blog\/?p=4107"},"modified":"2025-10-21T19:39:48","modified_gmt":"2025-10-21T16:39:48","slug":"the-black-saturday-of-crypto-market","status":"publish","type":"post","link":"https:\/\/evercodelab.com\/blog\/the-black-saturday-of-crypto-market\/","title":{"rendered":"The Black Saturday of Crypto: How the Market Collapsed and Recovered"},"content":{"rendered":"\n

On October 11, the crypto market experienced an unexpected<\/strong>, high-impact shock<\/strong> now known as Black Saturday<\/strong>. <\/p>\n\n\n\n

In just a few hours, many tokens collapsed, large liquidations occurred across exchanges, and Bitcoin<\/strong> fell below $111,000<\/strong>, marking for the first time a daily candle at $20,000<\/a>, which triggered panic across spot and derivatives markets. <\/p>\n\n\n\n

But what caused this incident? And how did this affect the market? Did w\u0435 manage to recover? In this article, we will try to answer these questions. <\/p>\n\n\n\n

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What was Black Saturday?<\/strong><\/h2>\n\n\n\n

As we\u2019ve already explained in our latest weekly crypto digest<\/a>,  a Black Saturday<\/strong> was a fast, deep market drawdown driven by a cluster of forced selling<\/strong>, leverage liquidations<\/strong>, and contagion<\/strong> across correlated tokens. <\/p>\n\n\n\n

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Within 24 hours, the value of leveraged positions decreased by over $19 billion<\/strong>, marking the most significant reduction in leverage in the history of the industry.<\/p>\n<\/blockquote>\n\n\n\n

So, as a result, unlike slow corrections, this was an acute liquidity event: dozens of leveraged positions were closed automatically, amplifying downward pressure and driving price drops across major cryptocurrencies and altcoins.<\/p>\n\n\n\n

Causes of the Black Saturday Crash<\/strong><\/h2>\n\n\n\n

Market tension intensified late in the U.S. session after President Trump announced a proposed 100% tariff on imports from China<\/strong>, which instantly pushed markets into risk-off mode: equities, commodities, and crypto all sold off. <\/p>\n\n\n\n

The collapse happened astonishingly fast: the steepest declines unfolded within roughly a 25-minute window, as high trader leverage collided with very thin order books. According to CoinDesk Reference Rates (CADLI)<\/a>, Bitcoin plunged to $106,560<\/strong> at the low, Ethereum to $3,551<\/strong>, and Solana to $174<\/strong>; smaller-cap tokens dropped more than 75% intraday. <\/p>\n\n\n\n

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A combination of margin calls, automatic liquidations, and market-maker withdrawals amplified the downward spiral. With too few buyers, the seismic move quickly turned into a broad sell-off.<\/em><\/p>\n<\/blockquote>\n\n\n\n

Market Impact: Token Price Drops, Bitcoin\u2019s Fall, and Fear & Greed Index Plunge<\/strong><\/h2>\n\n\n\n

As we\u2019ve already mentioned, many altcoins posted steep intraday declines as liquidity evaporated, while BTC<\/strong>\u2019s drop to around $20,000 concentrated headlines and trading activity. <\/p>\n\n\n\n

ETH dropped<\/a> to $3,700 and even lower. Many altcoins suffered double-digit losses, among the top ten by market value, XRP<\/strong>, Solana,<\/strong> and Dogecoin<\/strong> fared worst, each down by roughly 20%. <\/p>\n\n\n\n

The Crypto Fear and Greed Index has dropped to 24<\/strong>, indicating a state of extreme fear in the market. As of now, it has rebounded to 33.<\/p>\n\n\n\n

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Source: Alternative.me<\/a><\/figcaption><\/figure>\n\n\n\n

The stock market was the first to respond: the Nasdaq<\/strong> and S&P 500 indices dropped <\/strong>by 3.5%<\/strong><\/a> and <\/strong>2.7%<\/strong><\/a>, respectively. This negative sentiment then spread to the world of cryptocurrencies.<\/p>\n\n\n\n

Why Did Prices Recover Within a Week?<\/strong><\/h2>\n\n\n\n

So far, different market analytics  underline a few dynamics that explain this rapid recovery:<\/p>\n\n\n\n