$BTC Flash Crash Called Temporary by Bitwise CIO


Bitwise Chief Investment Officer Matt Hougan says the recent #crypto market flash crash was a temporary event rather than a structural problem. He argued that #leverage, not fundamentals, drove last week's record $20 billion liquidation, with no lasting damage to crypto's core outlook.


The turmoil began late Friday after #PresidentTrump posted on #TruthSocial that he would impose 100% tariffs on all Chinese imports. Traders reacted in the only market still open at the time, with $BTC tumbling as leveraged positions unwound in a cascade representing the largest known liquidation in crypto history.


$BTC fell 15% toward $100,000 on some exchanges at its worst point, while $ETH dropped over 20% and $SOL plunged 40%. However, by Monday morning, Bitcoin recovered to around $115,000 after Trump seemingly attempted to de-escalate tensions, returning near the level before his initial post.


In a note to clients late Tuesday, Hougan said crypto rebounded quickly because nothing fundamental to its outlook changed. He outlined three key questions the episode prompted: whether any major player collapsed, how the #technology held up, and how investors reacted to the volatility.

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October 15, 2025 at 5:37 PM
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