#加密市场观察 The most brutal scene ever: Immortal giants battling on the front lines! The crypto market is bleeding...

The crypto market has once again collapsed... Many people blame this plunge on a huge split within the crypto community—around the responsibility for the "1011 Incident" on October 11 last year (also known as the "1011 Event" where Trump reignited the tariff war! Crypto market plummeted...). The infighting over who is responsible has become increasingly intense, with both camps on edge, escalating into a battle of gods. The liquidity in the crypto market was already fragile after 1011, and this "civil war" became the last straw that broke the camel’s back, leading to widespread devastation.

One How big is the blame for 1011?
Before the 1011 incident, BTC's trend was highly aligned with gold and US stocks, soaring amid the optimistic sentiment following Trump’s rise: BTC once surged past $120,000, gold hit a record high, and tech stocks in the US stock market were also hot, all moving in sync. But after 1011, the retail investors who invested in cryptocurrencies seemed to realize that the crypto market was a chaotic mess, and they were shocked to see such a steep decline! As a result, many abandoned crypto and joined the hype around gold and silver, which they see as more reliable investments with less manipulation. Therefore, many voices in the market believe that the 1011 event caused Bitcoin to decouple from the rhythm of gold and US stocks. Without 1011, Bitcoin’s current price might have reached $200,000! Because the blame for 1011 is so significant, it has triggered a huge rift within the crypto community recently.

Two The scapegoat faction’s view
The scapegoat faction believes that bn is the culprit behind the 1011 event and should be held responsible. Their core argument is that bn’s system failure + irresponsible marketing amplified the disaster. The representative figure leading this charge is Cathie Wood (Woodie: bn screwed up the crypto bull market! He Yi responds: Woodie spreading rumors~), who in an interview with Fox Business directly pointed to “bn software failure” as the cause of the $28 billion deleveraging. She called it a “forced deleveraging event,” with bn’s oracle/mark price chaos and liquidation engine out of control as the fuse, with BTC, the most liquid asset, bearing the brunt. In response to Woodie’s accusations, bn stated that she doesn’t understand much about the crypto industry and is listening to rumors spread by others. At this point, more experienced crypto veterans like Star Xu also stepped forward: publicly criticizing bn for “irresponsible marketing” of USDe (12% high-yield activity + circular lending), treating USDe as cash, attracting huge leverage without sufficient risk warnings, leading to explosions with small fluctuations. Star emphasized that this is a “systemic risk,” worse than the FTX collapse. Some may also question whether Star’s boss has conflicts of interest with bn; Solana’s founder Toly (Anatoly Yakovenko) also expressed his stance, retweeting Star’s tweet and sarcastically noting “recovery in only 18 months after the incident” (a dig at SOL’s recovery after FTX). As a result, CZ unfollowed Toly, and the community interpreted this as “Toly siding with the victim, bn feeling guilty.”

Three The shield-the-blame faction’s view
In response to the aggressive accusations above, CZ said that the core reason for the plunge was macro tariffs + the overall fragility of the high-leverage market, combined with a liquidity crunch on Friday night, not bn’s system or operations. Then bn’s official released a report admitting two minor technical issues (transfer delays, index deviations), but emphasized that the de-pegging occurred after the most intense volatility, with 75% of liquidations already completed; the main cause was chain reactions in the market + macro panic. This big blame cannot be solely defended by bn alone; other industry leaders need to step up and support themselves. Currently, the main figures who have clearly come out to defend bn are Evgeny Gaevoy and Haseeb. The main argument of this faction is that the blame is being unfairly placed on a single exchange as “irrational,” and no single scapegoat should be singled out. However, from the alliances formed, it’s clear that these supporters are all major players in the crypto industry, somewhat similar in nature. Another argument from the shield-the-blame faction is that, given the current liquidity situation in the crypto industry and ongoing disputes over the responsibility for last October’s flash crash, a bigger crash has already occurred: several big players have been wiped out, MicroStrategy’s stock price is worse, and the coin prices once fell below their cost basis. Some worry that if prices continue to deteriorate, MicroStrategy could become the next “systemic bomb.” Possibly for this reason, MicroStrategy’s CEO Saylor retweeted a statement about buying $1 billion worth of Bitcoin, calling on all the giants to put aside disputes and jointly accumulate coins!

Four Currently, bn might have too much influence over the crypto industry, to the point that the crypto market no longer seems truly decentralized. This has led to US-based capital, led by Woodie, viewing bn as a thorn in their side. Because as long as these US capital forces add a little water to the crypto pool, someone will find ways to steal that water. So they realize that this leaking pool can never be filled.