The cryptocurrency market experienced significant volatility yesterday (11th) due to US President Trump's tough trade stance against China, with market liquidations reaching a record high of $19 billion. Bitcoin and Ethereum both plummeted, with some Altcoin plummeting by over 95%, creating a bloodbath in the market. This bloodbath also caused crypto market sentiment to plummet to a freezing point, with the panic index dropping to 25, indicating a collapse in investor confidence .
Whale buy the dips and build positions
However, although the market sentiment has not yet recovered today (12), some whale(big investors) have chosen to build positions in panic, trying to buy the dips and bet on a rebound. The following are the buying trends of some whale in the current market:
First, ABCDE Capital co-founder Du Jun posted on the X platform today that he has begun building a position in ETH spot in batches around the $3,800 range. However, he also admitted that the overall market direction remains uncertain, with the key being the performance of US stocks next week. Therefore, his primary strategy is to test the waters with a small position.
Meanwhile, Vida, founder of Formula News, also revealed on his personal channel today that he has once again long$4 million in SOL (average price $175.8) and $500,000 in XPL (average price $0.395). However, he stated that this was pure gambling, and that his position was a bet on a rapid recovery after the US stock market opens next week. He noted that the market has already priced in an extreme 5% drop in the S&P 500, and if the decline is less than expected, market sentiment will rebound quickly. Notably, Vida stated before yesterday's market liquidation that he had already sold most of his cryptocurrency and stock holdings, and stated that there might be an opportunity to buy them back at a lower price in the future.
Separately, on-chain analyst Ai Yi monitored this morning that a new address withdrew 1,392 ETH (approximately $5.18 million) and 428,000 UNI (approximately $2.52 million) from Binance today. Ai Yi also detected that the address 0xb9f…6d365 deposited 9.5 million USDC into Hyperliquid today, subsequently opening a 25x leveraged long position on 18,960 ETH (worth $70.76 million).
Market analysis remains divided
In terms of market analysis, investment analysis firm The Kobeissi Letter offered an optimistic view , stating that the market crash was caused by a combination of sudden technical factors and had no long-term impact on fundamentals. The Kobeissi Letter believes that a technical correction was already inevitable, and that a US-China trade agreement will ultimately be reached, and that the crypto market still has strong potential:
We are still in a bull market.
Cory Klippsten, CEO of Swan Bitcoin, also stated that the market is digesting the macroeconomic impact of Trump's tariffs. This plunge will flush out leveraged traders and weak positions, providing momentum for the next wave of gains.
However, pessimistic voices are equally resounding. For example, legendary trader Eugene Ng Ah Sio posted on his personal channel, stating that this market crash will have far-reaching consequences and that the crisis has already arrived:
There have been many insightful analyses of Friday's events. My own perspective is briefly as follows:
The Altcoin market is dead for the foreseeable future. The scale of this wealth destruction and the manner in which it was executed will long be etched in the minds of those involved.
Long-short strategies are not viable in the crypto market. These strategies may work in normal market conditions, but they often fail at the most critical moments.
There will be a chain reaction (contagion), but the extent of it is yet to be determined. I hope there won't be a major systemic problem.
Goodbye, Decrypted Access Treasury (DATs).
