The post Crypto Market Wipes Out $1 Trillion Since October: Analyzing The Forces Behind The Crash appeared com. Since October 6, the crypto market has lost over $1. 1 trillion in value. Analysts from The Bull Theory examined the underlying causes of this behavior and identified significant issues causing such poor performance in what was expected to be a bullish fourth quarter for the industry. Market Liquidity Stumbles Post-October 10 Sell-Off One of the primary factors cited is the severe damage inflicted on market liquidity following the dramatic sell-off on October 10, which resulted in more than $20 billion liquidated from traders in a matter of minutes. This particularly impacted altcoins, with many seeing losses of 70% to 80%. With liquidity diminished, the current market environment allows prices to fluctuate easily, meaning even minor sell-offs can lead to rapid price drops. The analysts noted that the liquidity has failed to recover since this initial dump, resulting in the order books for major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) becoming increasingly sparse. The consequences of this thin liquidity are stark; a small volume of selling can generate significant downward price movements. This observation matches the reality of recent market activity, where price declines appear more pronounced than the actual selling volume. Another contributing factor to the downturn, as pointed out by market analyst Tom Lee, is the behavior of major market makers. According to Lee, the ongoing correction may stem from one or two large entities facing considerable losses. Layered upon these issues is the excessive leverage in the market. Despite the unprecedented liquidations, many traders have reportedly returned to the market with increased leverage. The Bull Theory analysts contend that this high leverage, coupled with thin markets, enables market makers to trigger substantial liquidations with minimal price movement, making the sell-offs appear more aggressive. Crypto Fear Index Hits Lowest Level In Over 3 Years Compounding these issues,.