The crash was triggered by US President Donald Trump's surprise announcement late that day of imposing additional tariffs of up to 100% on Chinese goods and threatening to control exports of critical software. This move triggered a wave of panic selling, wiping out more than $19 billion in leveraged trades in just 24 hours. Analysts said this was the largest 24-hour sell-off in market history. This was 9 times larger than the crash in February 2025, 19 times larger than the crash in March 2020, and the bankruptcy of the FTX exchange in November 2022.
During the volatile session, bitcoin fell as low as $104,782.88, down more than 14% from its intraday high of $122,574.46. Ether, the second-largest cryptocurrency, fell 12.2% to a low of $3,436.29 on Oct. 10.
However, the heaviest losses belonged to altcoins (a general term for cryptocurrencies other than bitcoin). Accordingly, coins such as HYPE, DOGE and AVAX at times plunged from 54% to 70%.
Markets later recovered slightly after Mr Trump softened his tone towards China over the weekend, noting that "everything will be fine" and the US did not want to "hurt" China.
Volatility has spiked and sentiment suggests many investors are fearful of further price declines, according to Sean Dawson, head of research at crypto options trading platform Derive.xyz. Data from Derive.xyz shows traders have been buying a lot of "put" contracts on bitcoin and ether, a move that suggests they are hedging against the risk of falling prices.
Despite the volatility, leading on-chain analyst Willy Woo noted that investor inflows into bitcoin have remained strong. This may be why bitcoin has held up better than expected compared to the sharp decline in the stock market. In contrast, Woo said he has seen a large drop in ether inflows. He believes that capital from altcoins is likely flowing into bitcoin instead of leaving the system.
Bitcoin is widely seen as a “blue-chip” crypto asset, held by many institutions, while altcoins are often seen as high-return but high-risk investments.
Analyst Nic Puckrin, co-founder of the crypto-asset trading platform The Coin Bureau, said the good news is that the crash has “washed out” overleveraged positions and reset the risk in the market. However, he also warned that bitcoin now faces an uphill battle to overcome key resistance levels if it is to reach a new high this year.
Source: https://baotintuc.vn/thi-truong-tien-te/sau-cu-sap-lich-su-tam-ly-phong-thu-bao-trum-thi-truong-tien-dien-tu-20251014173448210.htm
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