Major updates to this article:
• October 10, 22:40 UTC: Most stablecoins quickly regained parity after the volatility, however USDN significantly depegged. Full report here.
• October 10, 22:10 UTC: New information about liquidation data, confirming major liquidation cascade behind the flash-crash.
• October 10, 21:50 UTC: Crypto continues to rebound, erasing much of the earlier drop. We’ve updated the article with the latest prices and developments.
• October 10, 21:40 UTC: Altcoins have begun to recover following the flash crash, though most still show double-digit losses over the past hour.
The crypto market went into full collapse late Friday as a wave of forced liquidations triggered a rapid and brutal sell-off across the board. Bitcoin fell more than 10% in minutes, crashing from above $117,000 to around $105,000. It has since recovered to around $114,500.
Ethereum dropped just as fast, breaking through several key support levels and hitting $3,500, but now it has recovered to $3,900, erasing nearly the entire flash-crash.
XRP saw the most extreme move of all, plunging 43% in a matter of minutes. The token, which had been trading above $2.85 earlier today, reached $1.50. However, now it has managed to recover back to $2.33.
Solana was swept up in the crash, briefly plunging to $174 before recovering to around $190. The drop wiped out all of the gains from recent weeks.
BNB, which had held firm above $1,200 through most of the recent volatility, also cracked. It has fallen below $1,000 – a level it hadn’t seen in weeks. However, now it has recovered to around $1075, level that would be considered an ATH just few weeks ago.
Read also: Stablecoins Wobble During Flash Crash – But Most Pass the Test
Record Liquidation Figures
According to liquidation tracking data, more than $9.4 billion in positions were wiped out over the past 24 hours, with longs accounting for nearly $7.9 billion of the total. Within just one hour during the sharpest part of the drop, nearly $7 billion was liquidated, including $6 billion in long positions.
Short sellers weren’t spared entirely, with over $1.5 billion in short liquidations as the market began to bounce.
What’s Going On?
The collapse came moments after a new post by U.S. President Donald Trump announcing sweeping trade measures against China. In his latest statement, Trump accused Beijing of taking an “extraordinarily aggressive” position by issuing a letter to the international community outlining broad export controls on nearly all goods – including some they don’t even manufacture. In response, Trump said the United States will impose a 100% tariff on Chinese goods starting November 1st. He also said new U.S. export controls on “critical software” would go into effect on the same date.
The language in the post was stark and immediately triggered panic across financial markets. Trump described China’s move as a “moral disgrace” and said it was clearly pre-planned years in advance. While stocks had already closed sharply lower earlier in the day, crypto markets – which trade continuously -reacted in real time.
The sudden shock led to a liquidation cascade across major exchanges. Billions in leveraged long positions were wiped out within minutes. Prices nosedived as liquidity thinned, order books emptied, and traders rushed to exit their positions. For many, it was a complete reversal of what had been a week of relatively steady consolidation and cautious optimism.
