Imagine waking up to find the cryptocurrency world has just experienced a heart-stopping plunge, with billions vanishing in the blink of an eye— that's the shocking reality that unfolded recently in the crypto markets, leaving investors scrambling and experts sounding alarms. But here's where it gets really intriguing: this isn't just another market dip; it's tied to massive institutional players and global economic shakes, and we're about to dive deep into what it all means for your investments. Stick around because this could change how you view the future of digital assets forever.
Updated on October 12. This piece was first shared on October 10.
Bitcoin prices have taken a dramatic nosedive, plummeting in what's being called a 'flash crash' that erased a whopping $12,000 from its value within mere minutes, following a dire 'cascade' alert from Forbes (check out this link for more: https://www.forbes.com/sites/digital-assets/2025/10/10/blown-away-bitcoin-braced-for-a-100-billion-blackrock-earthquake-as-wild-price-swings-rock-crypto/).
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The price of bitcoin dipped below $107,000, tumbling from yesterday's peak of $123,000 and even farther from its all-time high of $126,000 set just this week. Meanwhile, leading cryptocurrencies like Ethereum, XRP, BNB, and Solana fared even worse, with the overall crypto market shedding a staggering $500 billion in value.
As concerns mount about the stability of the U.S. dollar (for deeper insights, see this Forbes piece: https://www.forbes.com/sites/digital-assets/2025/10/07/serious-us-dollar-fed-warning-triggers-sudden-bitcoin-and-gold-all-time-high-price-surge/), traders are on edge, anticipating more drops as bitcoin's fall intensifies amid the uncertainty sparked by President Donald Trump's new tariffs on Chinese goods.
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Forbes' 'Cascade' Price Warning Positions Bitcoin at a Precipice Before BlackRock's Imminent $100 Billion Milestone
By Billy Bambrough (https://www.forbes.com/sites/digital-assets/2025/10/10/blown-away-bitcoin-braced-for-a-100-billion-blackrock-earthquake-as-wild-price-swings-rock-crypto/)
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President Donald Trump has shown strong backing for bitcoin and cryptocurrencies, fueling the ascent of bitcoin alongside Ethereum, XRP, BNB, Solana, and the broader crypto ecosystem.
Getty Images
A rapid liquidation event in the form of a flash crash eliminated nearly $7 billion across various markets in just one hour, with $5.5 billion of that stemming from long positions, according to Sean Dawson, research head at the prominent onchain options platform Derive.xyz, in his email remarks.
'Bitcoin and Ethereum alone made up $3.3 billion of these liquidations. Altogether, positions worth about $9.6 billion have been forcibly closed in the last 24 hours, setting a record for the biggest daily wipeout in crypto history.'
October 12 update: The abrupt bitcoin and crypto market flash crash has traders in a state of shock.
'As someone who follows the crypto scene closely, moments like this leave me genuinely speechless,' remarked Lark Davis, a crypto analyst and author of the Wealth Mastery newsletter, in an email, highlighting the over $19 billion in liquidations over the past day—surpassing even the impacts of the COVID pandemic and the FTX collapse. 'This is a tough blow for the market, and many are feeling the pain right now.'
Bitcoin's swift decline from its $126,000 all-time high to under $110,000 in just minutes created ripple effects throughout the crypto space, with some lesser-known coins nearly evaporating before rebounding.
This weekend bitcoin price flash crash, occurring outside standard market hours, has raised red flags about the increasingly favored bitcoin exchange-traded funds (ETFs), particularly BlackRock's IBIT nearing the $100 billion mark, which operate only during regular stock market times. This limitation prevents ETF holders from adjusting to bitcoin's volatile weekend movements.
To put it simply for newcomers, ETFs are investment vehicles that track assets like bitcoin but trade like stocks on exchanges with fixed hours, unlike direct crypto holdings which can be bought or sold anytime. This weekend volatility underscores a key risk: if bitcoin swings wildly outside those hours, ETF investors might be stuck unable to respond, potentially locking in losses or missing opportunities.
'The intense overnight fluctuations in bitcoin's price underscore why big institutional players now see round-the-clock access to trading as crucial for smart risk handling,' explained Tommy Doyle, global relationship management leader at Xapo Bank, in his email comments.
'While bitcoin ETFs are still restricted to traditional market schedules, institutions with direct bitcoin holdings can manage their risks and maintain access to funds even on weekends, which is especially vital given these recent massive price shifts.'
The selling frenzy was ignited by President Trump's announcement of a 100% tariff on all Chinese imports, labeling China's trade stance as 'extraordinarily aggressive.'
'Markets are in turmoil following Trump's unexpected China tariff ultimatum, which has reignited instability, pushing bitcoin towards $100,000 and unleashing one of the crypto world's most significant liquidation waves,' noted analysts from 10x Research, led by CEO Markus Thielen, in their email update, injecting a note of optimism amid the chaos.
'With $8 billion in involuntary closures, alternative coins dropping far more sharply than bitcoin, and financing rates plunging into negative territory, the current situation is wildly unpredictable—yet brimming with potential for savvy moves.'
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Forbes' Serious U.S. Dollar Fed Warning Sparks Instant All-Time High Surge in Bitcoin and Gold Prices
By Billy Bambrough (https://www.forbes.com/sites/digital-assets/2025/10/07/serious-us-dollar-fed-warning-triggers-sudden-bitcoin-and-gold-all-time-high-price-surge/)
Bitcoin has surged impressively this year, bolstered by President Donald Trump's endorsement, propelling the combined value of bitcoin, Ethereum, XRP, Solana, BNB, and the entire crypto market to unprecedented peaks.
Forbes Digital Assets
This bitcoin and broader crypto flash crash unfolds against a backdrop of macroeconomic upheaval, with market watchers vigilant for signals of an impending deeper downturn. For beginners, think of macroeconomic factors as the big-picture economic forces—like inflation, interest rates, or international trade policies—that can sway entire markets, not just crypto.
'Bitcoin's share of the crypto market exceeding 60% points to a transformative new era, and with short-term volatility over 50%, it opens up some of the most lucrative options trading chances we've seen in ages,' the 10x Research team added. 'But lurking beneath the surface is a larger economic narrative—oil prices dipping below $60 per barrel, Treasury bond yields trending downward, and the S&P 500 showing its first signs of stress since spring. Could Trump's upcoming social media posts bring calm, or ignite yet another wave of selling?'
And this is the part most people miss: while Trump's pro-crypto stance has fueled bitcoin's rise, his tariff policies seem to be pulling it back. Is this a sign of conflicting priorities, or just the natural volatility of a market tied to political winds? What do you think—does embracing bitcoin mean compromising on trade wars, or can they coexist? Share your thoughts in the comments below; I'd love to hear if you agree this is a potential weakness in Trump's approach or if it's all part of a bigger strategy. But here's where it gets controversial: some argue that these tariffs could actually strengthen bitcoin as a hedge against dollar inflation, turning a short-term crash into a long-term boon. Do you see it that way, or is this just wishful thinking in a turbulent market? Weigh in and let's discuss!
