Full Recap of the '1011' Event
Raoul Pal, co-founder of Real Vision, recently discussed the ripple effects of the '1011' event on crypto markets. According to global liquidity models, Bitcoin should have been trading near $140,000. However, a combination of macro shocks and market dynamics led to underperformance compared to equities and gold.
The event was triggered by sudden trade policy uncertainty linked to Trump-era tariffs, causing a wave of leveraged liquidations. At the same time, temporary disruptions to certain exchange APIs prevented market makers from placing orders, forcing leading CEXs to use their balance sheets to prevent systemic collapse.
Why Market Weakness Persists
- CEXs may have absorbed over $10 billion in assets
- Algorithmic selling concentrated during US market open
- Inventory unwinding prolongs price suppression
Raoul noted that this selling pressure is expected to clear by late February, potentially triggering a strong rebound, with Bitcoin racing toward its modeled target.
Debt Risks Under Control
Addressing recent balance sheet concerns, Raoul emphasized that debt exposure remains manageable. Strategic adjustments to capital structure have helped mitigate financial stress and position the ecosystem for future stability.