A popular crypto blogger explained how the collapse of the crypto market will trigger a new rally.

Coin22 believes that the collapse could have initiated the market's preparation for a new rally.
The blogger sees opportunities to buy coins during periods of fear.
The growth of bullish sentiment may support the ceasefire between China and the USA.

Last week was one of the most intense for the crypto market in recent years. One negative news related to geopolitics triggered a record wave of liquidations and wiped out most margin positions from the market.

According to the blogger Coin22, this is not a catastrophe, but a restart of the market, which is now starting to move from a clean slate.
From collapse to restart

Coin22 believes that the coming weeks will be determined by the actions of Donald Trump and China. Following Beijing's statements that there are no plans to impose a ban on the export of rare earth metals, and Trump's words about readiness to negotiate with the Chinese side, investor sentiment has gradually begun to improve.

According to the blogger, diplomatic cooling may become a starting point for the recovery of risk assets. China is showing readiness for dialogue, while the US is softening its rhetoric. This creates a foundation for a positive market reaction, including cryptocurrency.
Why the trade war is disadvantageous for the USA

Coin22 noted that a full-scale tariff war would primarily harm the American economy. Over the past few decades, the U.S. has become dependent on Chinese imports, ranging from electronics and auto parts to household goods.

The introduction of one hundred percent tariffs will lead to an increase in production costs, a rise in import prices, and heightened inflation. This contradicts the policy of the Federal Reserve, which has begun to lower rates to stimulate the economy.
If the diplomatic course is maintained, the dollar may weaken, and part of the capital will begin to flow into more profitable assets. Historically, periods of dollar index decline have often coincided with the rise of Bitcoin and other phases of cryptocurrency market strengthening.
Bitcoin tests the "golden cross"

Coin22 notes that the technical picture appears more stable than it seems at first glance. Bitcoin is once again testing the so-called "golden cross" — the intersection of short-term and long-term moving averages, which in the past has often preceded growth cycles.

Ethereum also demonstrates resilience. After the drop on October 11, it quickly recovered and holds important support levels. There is a noticeable increase in ETH withdrawals from exchanges on the blockchain, indicating a shift towards long-term holding. This is a signal that large holders do not plan to sell the asset and maintain confidence in its prospects.
The whales have awakened

Coin22 notes that the activity of large investors is observed not only in ETH. Whales are increasing their positions in Chainlink and Uniswap, indicating a continued interest in the DeFi sector.

Even meme coins are back in the spotlight. Large purchases of Dogecoin and Pepe are once again being recorded, which usually indicates a growing appetite for risk. According to the analyst, if whales are entering such assets, they expect a recovery in liquidity and an overall improvement in market sentiment.

The position of Coin22 is supported by major players. Tom Lee, the head of Bitmine, believes that the current decline is not a reason for panic, but an opportunity to buy. His company recently acquired 128,000 Ethereum for about $480 million, increasing its ownership stake to nearly three million coins.

Such behavior of institutional investors, according to Coin22, indicates a long-term confidence in the recovery of the market. Large funds are acting according to the classic strategy — buying on fear when retail participants are selling off assets.
Prospects and Impact of the Fed

Markets are almost certain that the U.S. Federal Reserve will lower rates by the end of October and then repeat this move by the end of the year. Easing monetary policy creates a favorable environment for capital inflows into risky assets, including cryptocurrency.

Coin22 believes that the fourth quarter of 2025 could mark the beginning of a new bull cycle. Despite the government shutdown and geopolitical risks, the market maintains faith in a shift in the Fed's policy and the return of liquidity. This, combined with the diplomatic thaw between the US and China, forms the basis for a positive scenario.
Instead of output

Coin22 urges investors not to panic and to use corrections as an opportunity to build positions. It notes that long-term catalysts remain positive, and a market recovery may begin in the coming months.

In his opinion, those who can maintain calm and continue to work according to the strategy of gradual accumulation will gain an advantage when the market enters a growth phase again.