Bitcoin’s $19B Flash Crash Anniversary: Have Risk Practices Improved?
What happened: One year ago, on October 10, 2025, Bitcoin experienced a historic flash crash, plunging from around $122,000 to $105,000 within minutes and triggering liquidations of approximately $19
What happened: One year ago, on October 10, 2025, Bitcoin experienced a historic flash crash, plunging from around $122,000 to $105,000 within minutes and triggering liquidations of approximately $19 billion in leveraged positions—nine times the previous single-day record. Over 1.6 million accounts were liquidated, largely in response to the sudden announcement of a 100% tariff on Chinese imports by then-President Trump. Since then, Bitcoin has not reclaimed the $100,000 mark.
Why it matters: The crash exposed the crypto market’s vulnerability to geopolitical shocks and excessive leverage, despite the availability of improved risk tools such as open interest and funding rate monitors. Experts like Mark Connors (Risk Dimensions) and Chris Sullivan (Hyperion Decimus) argue that while transparency has increased, the structural risks—especially from perpetual futures and leverage—remain largely unresolved. The event also challenges the reliability of the four-year halving cycle thesis for Bitcoin price prediction.
Source: CoinDesk