Written by: ChandlerZ, Foresight News

After the record-wide liquidation on October 11, the order books of mainstream exchanges briefly turned empty, with market-making funds significantly retreating, leading to a sharp decline in the depth of available orders. Starting from the end of October, the prices of Bitcoin and Ethereum repeatedly weakened, with increased volatility and a downward shift in risk appetite. More importantly, the differentiation among cryptocurrencies further expanded after October; Bitcoin still had institutional buying and liquidity support, but the altcoin sector faced heavier market-making and depth pressure, with prices becoming significantly more sensitive to buy and sell orders of similar scale.

This fragility of liquidity is being amplified into a visibly chaotic battlefield. We have observed that the price fluctuations of various cryptocurrencies in the recent crypto market have become more intense and rapid than before. On the same trading day, high-level surges and deep pullbacks alternated, with K-line shadows significantly lengthening and "gap" fluctuations increasing at the 1-4 hour level.

The trend of JELLYJELLY is a typical example. On November 4, after stabilizing around $0.05, JELLYJELLY began to rise, reaching a peak until a straight-line surge occurred at 5 AM on November 5, peaking at $0.517, where a small number of active buy orders could clear the upper orders layer by layer, creating a leap-like rise. Subsequently, there was insufficient support at high levels and a contraction of market-making risk exposure, and after short-term funds took profits, the price of JELLYJELLY quickly fell away from its peak and entered a rapid decline zone.

From the peak on November 5 to November 7, the price retraced to $0.09, completing a roller coaster ride in just three days. After the volume peak, JELLYJELLY's trading volume gradually decreased, and open interest (OI) quickly fell from its previous high, coinciding with the price drop. In simple terms, funds were pulled directly in a thin depth, and after insufficient support at high levels, the price was directly smashed down.

In the blink of an eye, the market is gone, and so is the money

In addition to JELLYJELLY, many other cryptocurrencies have experienced accelerated market movements in a short period, with several small coins shifting their main market activities to the early morning hours in Beijing time. MMT (Momentum) is also a representative of this type of early morning market. At 6:30 AM on November 5, a sharp peak surge occurred, with the price rising from about $0.47 to around $4.00 in a very short time, followed by a downward oscillation back to around $0.50.

The typical approach for these trading movements is either to press down or move sideways during the day, then suddenly reverse between 2:00 AM and 7:00 AM: either a sharp pull to fill gaps or a rebound to offload. For example, HIPPO suddenly ignited around 2:30 AM on November 7 after a period of sideways movement, pulling up sharply in a short time; TON Station (SOON) peaked sharply around 3:30 AM on November 5 before falling back; CUDIS saw a single large volume spike at 3:30 AM on November 5, followed by a gradual decline; UAI first hit a low and then quickly rebounded between 6:00 AM and 7:00 AM on November 7.

It can truly be said that in the blink of an eye, the market is gone, and so is the money. What was on the gainers' list yesterday is directly on the losers' list today; strong rebounds and deep pullbacks swap positions within two hours, leaving only the options of "getting on the bus too late or getting off too late."

Clear sector differentiation, extremely fast rotation

According to SoSoValue data, the crypto market shows a divergence in gains and losses, with the DePIN sector rising 10.93% in 24 hours. Within this sector, Filecoin (FIL) surged 51.83%, and Arweave (AR) rose 37.92%. However, Bitcoin (BTC) fell 1.63%, dropping below $102,000, and Ethereum (ETH) decreased 2.37%, retreating to around $3,300.

Other standout sectors include the AI sector, which rose 6.01%, with the Sui ecosystem AI infrastructure DeAgentAI token AIA strongly climbing, breaking through $12 and reaching a historical high, with a 24-hour increase of 685.95%. DeAgentAI covers the AI agent infrastructure across the Sui, BSC, and BTC ecosystems, empowering AI agents to achieve trustless autonomous decision-making on-chain; Sapien (SAPIEN) surged 187.63% due to factors such as Binance listing spot trading pairs. The Layer2 sector rose 0.82%, with Stacks (STX) increasing by 5.37%.

In other sectors, the CeFi sector fell 0.14%, with Mantle (MNT) relatively strong, rising 2.12%; the Layer1 sector decreased 0.34%, but Zcash (ZEC) continued to rise, increasing by 15.73%, while Internet Computer (ICP) rose 18.72%; the Meme sector fell 1.78%; the DeFi sector dropped 2.04%, but MYX Finance (MYX) rose 22.94%. Additionally, the PayFi sector, which led the gains yesterday, experienced a pullback, falling 4.01% in 24 hours, while Dash (DASH) rose 15.74% against the trend. The crypto sector indices reflecting historical market performance show that the ssiDePIN, ssiSocialFi, and ssiLayer2 indices rose by 13.57%, 1.52%, and 1.40%, respectively.

This volatility structure also exhibits three characteristics: first, the rotation of funds has accelerated, with rapid exchanges between the gainers' and losers' lists, increasing the probability that strong coins weaken the next day and weak coins rebound after being wrongly sold; second, the leverage of derivatives exacerbates feedback, with perpetual contract positions rapidly increasing and decreasing in a short time, and funding rates and basis frequently flipping, triggering localized strong liquidation chain reactions; third, sensitivity to news has increased, with fragmented on-chain/project-side movements being amplified in a low-depth environment, making algorithms and high-frequency strategies more likely to trigger instantaneous market movements.

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