A year after the crypto market faced a $19 billion crash, the industry is still adjusting to a new reality. Bitcoin, the leading cryptocurrency, remains over 30% below its peak value, and traders have been hesitant to return to leveraged positions that once fueled massive market booms.
The crash last October exposed vulnerabilities in the market structure, despite earlier optimism fueled by White House support and Wall Street enthusiasm. Data from CryptoQuant shows that total open interest in Bitcoin-linked perpetual futures, a measure of leveraged bets, has halved since the crash, though a recent rally above $80,000 has slightly restored confidence.
Despite the market’s struggles, traditional financial institutions are increasingly experimenting with digital assets. Julia Zhou, president at crypto market maker Caladan, emphasizes that the focus should be on whether the market has become more resilient rather than on the return of leverage.