The cryptocurrency world is reeling from one of its most dramatic downturns in recent history, as Bitcoin $BTC and other major assets experienced a sharp flash crash earlier this week. Triggered by U.S. President Donald Trump's renewed tariff threats on Chinese imports, the market saw a staggering $600 billion wiped out in value within hours. Bitcoin $BTC plunged as low as $103,600 – its steepest single-day drop since June – before staging a partial recovery to hover around $105,700 by Friday morning.Ethereum $ETH wasn't spared either, tumbling over 6% to $3,679 amid fears of broader economic instability, including U.S. banking sector woes and massive ETF outflows totaling $593 million in a single day. XRP and Solana also suffered, with losses exceeding 7% and 8%, respectively, as leveraged positions were liquidated en masse, exacerbating the panic.Analysts point to a toxic mix of factors: heightened credit fears from regional bank troubles, a shift in investor sentiment toward safe-haven assets like gold, and the crypto fear and greed index plummeting to 28 – signaling extreme caution. "This was the largest wipeout in a 24-hour period in the market's history," noted one expert, nine times bigger than the February 2025 crash.Yet, glimmers of hope emerge. Bitcoin has clawed back above $107,000 in early Saturday trading, buoyed by resilient institutional interest and potential policy tailwinds like Florida's proposed Bitcoin investment bill. Glassnode analysts warn of further downside if BTC breaches $99,900, but long-term bulls see this dip as a buying opportunity in a maturing market.As the dust settles, the October 2025 crash underscores crypto's volatility – a reminder that even in bull cycles, black swans lurk. Investors are advised to brace for turbulence while eyeing the horizon for recovery.
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