The Post-Crash Market: Why Investors Should Exercise Caution
Date: 2025-10-21 Author: Henry Casey Categories: BUSINESS
Following the largest crash in recent months, which resulted in the liquidation of over $19 billion in positions, the market situation remains extremely volatile. Anatoly Radchenko, author of the "Financial Circle" Telegram channel, explained in a conversation with participants of the RBC Crypto forum why a quick recovery is not yet expected.
According to him, the consequences of the recent crash are not fully understood, and the issue of compensation for losses, including from Binance, is still being discussed. Amid this uncertainty, investors are opting for caution, as even minor fluctuations could trigger a new decline.
Bitcoin is trading near $111,000 on October 20, up about 2.5% in 24 hours but remaining 3% lower than last week. Radchenko notes that weekend price increases rarely foreshadow a sustained upward movement: most traders who buy on these days subsequently lock in losses. The expert emphasizes that following the cascade of liquidations, the market is experiencing structural problems, and it's best to refrain from active action now.
In addition to internal factors, external circumstances are also having a significant impact. Last week, US Federal Reserve Chairman Jerome Powell announced a shift to quantitative easing (QE), which involves additional asset issuance and purchases. This typically increases liquidity in markets, including the cryptocurrency sector. Market participants are also anticipating two possible Fed rate cuts before the end of the year.
However, geopolitical and economic risks could outweigh this positive impact. Radchenko warns that President Donald Trump's new statements on trade tariffs, instability in the Middle East, and uncertainty in the global economy could cause prices to plummet again. "We're operating almost blind: the US government is not functioning, official data is not being published, and the market is moving without clear guidelines," the analyst noted.
He added that at historical highs, even a minor event could trigger a collapse similar to the one that occurred on October 10. With "no orders in the order book" and minimal liquidity, any movement could lead to extreme volatility.
Radchenko advises investors to avoid excessive risk and focus on capital preservation. He also noted that Tesla is expected to publish its quarterly report in the coming days. If Elon Musk's company reduces its Bitcoin holdings, this could trigger a new round of declines in the market.
Right now, according to the expert, caution is the best approach. It's better to miss out on some potential profits than to be among those who lose everything in the next wave of panic.
