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      One Year After the '1011 Crash', Crypto Market Risks Persist

      It has been one year since the '1011 crash' in the cryptocurrency market, which resulted in approximately $19 billion in leveraged liquidations. This event occurred in October 2025, shortly after Bitcoin reached a historic high of over $126,000. The price of Bitcoin fell dramatically from around $122,000 to $105,000 in a brief period, leading to significant liquidations of large leveraged long positions.

      Analysts caution that the structural risks that contributed to this flash crash remain present. Mark Connors, an analyst at Risk Dimensions, noted that recent price fluctuations are increasingly influenced by derivatives, such as perpetual contracts, rather than on-chain data. The trend towards high-leverage products on exchanges has not mitigated the risks associated with sudden market downturns.

      Chris Sullivan, co-founder of Hyperion Decimus, advised traders to manage their leverage carefully and to monitor indicators such as open interest and funding rates. He also recommended that long-term investors consider transferring their assets from trading platforms to self-custody solutions to enhance security.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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