Crypto ‘Got a Passing Grade’ on the Weekend Crash: Bitwise CIO Matt Hougan
The crypto market experienced its largest leveraged liquidation ever last weekend, triggered by former President Trump’s threat of 100% tariffs on Chinese imports, raising trade war fears. Bitcoin dropped nearly 15%, and altcoins like Solana fell up to 40%; around $20 billion in leveraged positions were wiped out. Bitwise CIO Matt Hougan called the event a temporary setback, noting DeFi platforms like Uniswap and Aave functioned flawlessly, though some centralized exchanges faced issues. By Monday, Bitcoin nearly fully recovered, indicating resilience in blockchain infrastructure, with losses mostly confined to individual investors and no major institutions failing. Hougan attributed the crash to excessive leverage rather than changes in crypto’s fundamentals, expressing confidence in the continuation of the bull market. Analysts are divided: some view the event as natural market deleveraging, with most liquidations considered orderly, while others blame market makers’ sudden withdrawal of liquidity for deepening the crash. Decentralized exchange volumes surged, and lending fees hit records, but overall, the event did not disrupt core crypto systems or alter the sector’s outlook.
