Why did the epic crash happen, and when is the bottom?

Chainfeeds Guide:

Why was this liquidation so intense? Has the market bottomed out? BlockBeats has compiled the views of several market traders and well-known KOLs, analyzing this epic liquidation from the perspectives of macro environment, liquidity, and market sentiment, for reference only.

Source:

BlockBeats

Opinions:

Mindao: On October 11, Mindao, founder of the DeFi protocol dForce, posted on social media that this crash is similar to the Luna collapse in that both occurred when major trading platforms began accepting illegal stablecoins as high LTV collateral, causing risks to penetrate across platforms. At that time it was UST, today it is USDe. The combination of "stability" and high collateralization rate misled most people. The worst combination when introducing illegal stable assets as collateral is using market prices for price feeds while allowing high collateralization rates; coupled with the fact that CEXs themselves do not have a fully open arbitrage environment, arbitrage efficiency is low and risks are further amplified. LSD-type assets face the same problem. These assets are essentially volatile assets disguised as "stable".

Haotian: To be honest, this 1011 black swan event made me, an originally optimistic industry observer, feel a hint of despair. I thought I understood the current "Three Kingdoms" situation in the crypto industry, thinking that while the giants fight, retail investors could follow and get a piece of the action. But after this bloodbath, peeling back the underlying logic, I realized that's not the case. Frankly, I used to think the tech side was innovating, exchanges were driving traffic, and Wall Street was deploying capital, each playing their own game. As retail investors, we just needed to catch the wave during tech innovation, hop on the hot topics, and rush in when capital enters, and we could always get a share. But after experiencing this 1011 bloodbath, I suddenly realized that these three parties might not be competing in an orderly way at all, but are instead ultimately harvesting all the liquidity in the market?

Kyle: Judging by current market sentiment, the last time we saw something like this was during the FTX or Celsius collapse. This crash is basically a "cycle-ending event," but this time BTC and ETH remained rock solid. The evolution of the crypto industry complex is truly astonishing, but altcoins are clearly repeating the same tragedy—despite my repeated warnings over the past few months, I didn't expect it to be this brutal. In short, this is not the "best" time to bottom fish, but it is definitely the time when you "should" be bottom fishing. Extreme panic has been released, and the market is building a bottom, though there may still be room to fall. In the bigger picture, we are definitely closer to the bottom than the top. Asset selection is crucial at this moment; many projects may never recover.