Viewpoint: This big dump is similar to large market makers actively withdrawing liquidity, and after the market leverage has undergone a deep cleaning, I remain optimistic about Q4.

On October 11, crypto KOL and former FTX community partner Benson Sun posted on social media, stating that many alts fell more than 60% early this morning. In the past, extreme liquidation events typically ranged from 1 to 2 billion USD, but this time the scale has expanded tenfold. It is reasonable for the crypto market to follow the big drop in the US stock market, but the massive evaporation of market capitalization in the short-term for alts is unusual, and it does not resemble a normal liquidation caused by simply high leverage. It is more similar to large market makers actively withdrawing liquidity, causing the market to fall into a deep vacuum instantly. The drop in alts is even more severe than the events of March 12 and May 19. This round of deleveraging can be considered the most thorough one in this cycle. The market bubble has been completely squeezed out, and risk leverage has dropped to zero again. I remain optimistic about the fourth quarter's performance and plan to spend about a month executing a phased Auto-Invest strategy.