Crypto crumbles as anniversary of flash crash nears

Digital asset markets sold off sharply on Thursday, with bitcoin sliding to its lowest level in roughly a month. According to CoinDesk, a modest early decline accelerated through the session, pushing bitcoin down about 4% over 24 hours to a price just above $80,000. That leaves the largest cryptocurrency lower by more than 8% from the level near $87,000 it approached only four days earlier.

The damage was broader and deeper outside of bitcoin. CoinDesk reported that ether and XRP each fell roughly 6% over the same 24-hour window, while solana dropped about 9%. All of those assets were down by double-digit percentages over the prior week, and the CoinDesk 20 index, which tracks a basket of large digital assets, was also lower on the day. The divergence meant that bitcoin's headline decline understated how much pressure the rest of the market was absorbing.

The timing has drawn attention because the selling arrived just ahead of the one-year anniversary of one of the most disorderly sessions in recent crypto market history. On October 10, 2025, bitcoin plunged from about $122,000 to roughly $105,000, with much of that move occurring within minutes, after having set a record above $126,000 shortly beforehand. That episode became a reference point for discussions about leverage, thin order books and the speed at which cascading liquidations can move prices in markets that trade continuously.

CoinDesk pointed to rising oil prices and higher interest rates as negative catalysts behind the current weakness. Both factors tend to weigh on assets perceived as higher-risk, since climbing energy costs can complicate the inflation outlook and firmer yields raise the return available from holding government debt instead. Crypto has increasingly traded alongside broader macro risk sentiment, so moves in commodities and bond markets frequently show up quickly in token prices.

Derivatives activity amplified the move. CoinDesk reported that roughly $1 billion in leveraged positions were wiped out across the market, with about $356 million of that total coming from ether positions over 24 hours. That was a larger figure than bitcoin's liquidations, despite ether's market value being less than a fifth the size of bitcoin's, suggesting leverage was concentrated disproportionately in ether at the time of the drawdown. Forced liquidations occur when exchanges automatically close margin positions that can no longer meet collateral requirements, which can add mechanical selling pressure on top of discretionary selling.

Fund flows pointed in the same direction. CoinDesk reported that U.S. spot bitcoin exchange-traded funds recorded $244 million in outflows on Thursday, while a zcash-focused product extended a run of outflows during October. XRP funds were the exception, standing out as the only category in positive territory on the day.

Prices did not stay at their lows. CoinDesk subsequently reported that bitcoin rebounded to around $82,000 after President Donald Trump ruled out strikes on Iran before the midterm elections and oil prices retreated, easing one of the macro pressures that had contributed to the slide.

The episode illustrates how closely crypto prices continue to track developments in energy markets, interest rate expectations and geopolitical headlines, and how leverage can magnify those moves in both directions. Nothing about the anniversary of a prior crash determines what markets will do next, and the figures above reflect a single volatile trading session rather than a durable trend. Readers should treat all of this as reporting on current market conditions, not as guidance about any particular course of action.

This is a news summary for general information only — not financial advice, and nothing here is a recommendation to buy, sell, or hold any asset. Always verify against the original source and do your own research before making a financial decision.