Recovery After $500B Crash Sets Stage For Q4 Rebound: Crypto Daybook Americas

What Happened

Oct. 13: CME Group aiming to launch options on SOL and XRP, subject to regulatory approval. MacroNothing scheduled. Earnings (Estimates based on FactSet data)Nothing scheduled. Oct. 13: CME Group aiming to launch options on SOL and XRP, subject to regulatory approval. Nothing scheduled. Token Events Governance votes & callsSuperfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13. ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13. UnlocksNo major unlocks. Token LaunchesOct. 14: SANDchain, a zk-powered Ethereum layer-2, launches. Superfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13. ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13.

Nothing scheduled. Earnings (Estimates based on FactSet data)Nothing scheduled. Oct. 13: CME Group aiming to launch options on SOL and XRP, subject to regulatory approval. Nothing scheduled. Token Events Governance votes & callsSuperfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13. ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13. UnlocksNo major unlocks. Token LaunchesOct. 14: SANDchain, a zk-powered Ethereum layer-2, launches. Superfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13. ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13.

Nothing scheduled. Oct. 13: CME Group aiming to launch options on SOL and XRP, subject to regulatory approval. Nothing scheduled. Token Events Governance votes & callsSuperfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13. ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13. UnlocksNo major unlocks. Token LaunchesOct. 14: SANDchain, a zk-powered Ethereum layer-2, launches. Superfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13. ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13.

Oct. 13: CME Group aiming to launch options on SOL and XRP, subject to regulatory approval.

Superfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13. ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13. UnlocksNo major unlocks. Token LaunchesOct. 14: SANDchain, a zk-powered Ethereum layer-2, launches. Superfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13. ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13.

No major unlocks. Token LaunchesOct. 14: SANDchain, a zk-powered Ethereum layer-2, launches. Superfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13. ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13.

Token Launches

Oct. 14: SANDchain, a zk-powered Ethereum layer-2, launches. Superfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13. ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13.

Superfluid DAO is voting on a proposal to upgrade contracts for wrapper superTokens like ETHx and USDCx so the DAO can invest their underlying assets and generate yield income for its treasury. Voting ends Oct. 13.

Market Context

A rapid and violent sell-off wiped more than $500 billion from crypto markets Friday, triggering forced liquidations, collapsing wrapped tokens, leading to nearly $20 billion in liquidations, and straining exchange infrastructure.

The flash crash, described by Bitwise portfolio manager Jonathan Man as possibly the worst liquidation event in crypto history, erased $65 billion in open interest and reset positioning to levels last seen in July.

The violent crash saw Bitcoin (BTC) drop 13% in a single hour before rebounding, while some tokens saw flash crashes of more than 40%. Since then, the market has been recovering, with the CoinDesk 20 (CD20) index now being up 7.7% in the last 24 hours, while still being down some 7.4% from the crash.

On Binance, infrastructure failures caused wrapped assets like wBETH and BNSOL to diverge massively from their underlying prices. wBETH, which is meant to track ether, fell as low as $430 while ETH traded above $3,800.Binance pledged to compensate affected users and has switched to a more stable conversion-based pricing model for wrapped assets.

“Market structure issues including large derivative exchanges liquidating users (irrespective of their margin), uptime issues, and some stablecoin and liquid staking assets experiencing meaningful price dislocations from their underlying collateral backing assets have all contributed to where we are today,” Stuart Connolly, CIO at Deus X Capital, said in an emailed statement.

“The "Perp Dex" narrative that has been so popular has taken a few meaningful steps back,” he added. “The market needed a reset, and if President Trump’s position softens, as it looks like it might, we will see crypto assets higher during Q4 as a result.”

The ongoing U.S. government shutdown means markets are still operating in a data vacuum. Amid the risk-off sentiment, gold has kept on rallying, helping tokens backed by the precious metal like PAXG and XAUT near $4,090.

Today, U.S. markets will remain closed, and there are few macro references to lean on. Traders will instead watch how the market reacts as liquidity gets a boost after the weekend.

None of the typically used crypto market cycle top indicators have so far been triggered. Stay alert!

Why It Matters

By Francisco Rodrigues (All times ET unless indicated otherwise)

What to Watch

Details

For a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead".

Crypto

Macro

Earnings (Estimates based on FactSet data)

Nothing scheduled.

Token Events

Governance votes & calls

ENS DAO is voting on a proposal to establish reverse records for its core contracts to improve identification, usability, and demonstrate best practices by fully using the ENS protocol. Voting ends Oct. 13.

Unlocks