By Francisco Rodrigues (All times Eastern Time unless otherwise noted)
The cryptocurrency market experienced a fragile recovery after a violent flash crash on Friday wiped out more than $500 billion in value and forced nearly $20 billion in liquidations on derivatives platforms.
Bitcoin fell as much as 13% in an hour, bottoming near $102,000 before recovering to now trade above $111,800. The broader market, as measured by the CoinDesk 20 Index (CD20), rose 11.8% from this week’s low, but fell 3.5% in the last 24 hours to 3,727 points. It underperforms BTC, which fell 2.8% in the same period.
Cryptocurrency market maker Wintermute said the liquidation unfolded in a tightly synchronized wave that tested the limits of perpetual contract trading platforms.
“The violent price movement quickly led to the disappearance of liquidity from the broader market,” Wintermute wrote. “As prices recovered after the crash, liquidity quickly returned.”
Sam MacPherson, CEO of Phoenix Labs and lead contributor to the Spark protocol, told CoinDesk that volatility ““It served as a real-time stress test for the underlying DeFi infrastructure.” He added that “top-line collateral played an important role here, acting as a stabilizing foundation during the market shakeout.”
Despite the chaos, signs point to continued institutional conviction. Citi reportedly plans to launch cryptocurrency custody services in 2026, aligning with a broader push by Wall Street to offer regulated digital asset products. At the same time, investment bank China Renaissance is raising $600 million for a BNB-focused investment vehicle in partnership with YZi Labs.
Fund flows also remain resilient. Crypto investment products recorded more than $3.1 billion in net inflows last week, according to CoinShares. Bitcoin spot ETFs recorded outflows of $326 million yesterday, showing nervousness among investors.
With the US government shutdown underway, the macro front should have little influence on the market for the time being. Fed Chair Powell will speak later today and traders will follow him for clues about the central bank’s view on tariffs.
Instead, the focus will be on how China responds to Trump’s additional tariffs. Stay alert!
What to watch
For a more complete list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
- Crypto
- Macro
- October 14, 12:20 pm: Federal Reserve Chairman Jerome Powell speaks at the annual meeting of the National Association for Business Economics (NABE) in Philadelphia, Pennsylvania.
- Earnings (Estimates based on FactSet data)
symbolic events
For a more complete list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
- Governance votes and calls
- Sandbox DAO is voting to enable property sales by allowing LAND owners to pool and sell multiple parcels through the GBM x Sandbox marketplace. Voting ends on October 15.
- Unlock
- Token releases
- October 14: SANDchain, an Ethereum layer 2 powered by zk, is launched.
Conferences
For a more complete list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
symbolic talk
By Oliver Knight
- Plasma fell another 13.5% on Tuesday, widening its losses to 52% since its debut in late September.
- The stablecoin-focused Layer 1 blockchain faces skepticism over its tokenomics and large “ecosystem and growth” allocations.
- Circulating supply stands at 1.8 billion against a total of 10 billion, indicating years of potential selling pressure as acquired tokens are unlocked.
- The tokens were sold in the public round for $0.05 each, leaving ICO buyers comfortably profiting at current prices of around $0.41.
- Investors who bought after going public are facing huge losses amid weak market sentiment.
- Analysts expect continued downward pressure once investors’ first tokens become fully liquid; ICOdrops data shows that a major unlock will occur in the second quarter of 2026.
Derivatives positioning
- The BTC futures market appears to be stabilizing after its recent volatility. Open interest has stabilized at around $25.5 billion, showing no major changes from yesterday after the significant drop over the weekend. The 3-month annualized basis is now trading in a lower 5-6% range, a drop from its previous bounce and indicating a slight cooling of bullish sentiment. A key divergence in funding rates remains: Bybit’s rate turns negative at -5%, while Hyperliquid’s remains positive at 10%. This suggests a mixed and complex market sentiment, with strong but isolated long and short convictions on different platforms.
- The BTC options market is showing a significant bullish acceleration. The 24-hour put/buy volume is now roughly balanced at a 50-50 split, a change from being dominated by calls, while the 1-week Delta Skew of 25 has risen dramatically to 12.62%. This high positive bias indicates a substantial premium for calls over puts, demonstrating that traders are aggressively positioning themselves for bullish price action and are willing to pay a premium for bullish exposure.
- Coinglass data shows $627 million in 24-hour liquidations, with a 70-30 split between long and short positions. ETH ($185 million), BTC ($125 million), and Others ($69 million) were the leaders in terms of notional settlements. The Binance settlement heatmap indicates $110,600 as the central settlement level to monitor, in case of a price drop.
Market movements
- BTC is down 3.86% as of 4pm ET Monday to $111,363.19 (24 hours: -3.22%)
- ETH is down 7.01% to $3,991.50 (24 hours: -4.3%)
- CoinDesk 20 is down 6.02% to 3,712.40 (24 hours: -3.74%)
- Ether CESR Composite Staking Rate is down 1bp to 2.91%
- BTC funding rate is 0.0008% (0.8924% annualized) on Binance
- DXY rises 0.17% to 99.43
- Gold futures rise 0.14% to $4,138.90
- Silver futures rise 0.14% to $50.50
- The Nikkei 225 closed down 2.58% at 46,847.32
- Hang Seng closed down 1.68% at 25,455.05
- The FTSE is down 0.32% at 9,412.64
- The Euro Stoxx 50 falls 1.02% to 5,511.68
- DJIA closed Monday up 1.29% at 46,067.58
- The S&P 500 closed up 1.56% at 6,654.72
- Nasdaq Composite closed up 2.21% at 22,694.61
- S&P/TSX Composite closed down 1.38% at 29,850.89
- The S&P 40 Latin America closed with an increase of 1.72% to 2,833.94
- The 10-year US Treasury rate drops 3 bp to 4.021%
- E-mini S&P 500 futures down 0.91% to 6,633.75
- E-mini Nasdaq-100 futures down 1.14% to 24,638.75
- The E-mini Dow Jones Industrial Average index fell 0.57% to 46,032.00
Bitcoin Statistics
- BTC dominance: 59.52% (0.86%)
- Ether to bitcoin ratio: 0.03572 (-3.07%)
- Hashrate (seven-day moving average): 1,052 EH/s
- Hash price (spot): $46.91
- Total fees: 2.87 BTC / $330,491
- CME Futures Open Interest: 140,690 BTC
- BTC priced in gold: 26.9 oz
- BTC market capitalization against gold: 7.59%
Technical analysis
- TAO has been one of the best-performing assets over the past week, with prices recovering to levels seen before the October 10 crash.
- The asset successfully reclaimed the 50-week EMA and broke its daily downtrend, closing at $447 yesterday. However, this area aligns closely with the yearly opening, which is currently acting as short-term resistance.
- For a bullish continuation, traders will want to see a weekly close above the $390 level and the price holding support above the 50-week EMA, confirming the change in trend strength.
Crypto Stocks
- Coinbase Global (COIN): closed on Monday at $356.99 (-0.01%), -3.83% to $343.31 in pre-market
- Circle Internet (CRCL): closed at $137.47 (+3.41%), -3.09% to $133.22
- Galaxy Digital (GLXY): closed at $41.23 (+4.7%), -4.22% to $39.49
- Bullish (BLSH): closed at $59.55 (-1.42%), -4.2% to $57.05
- MARA Holdings (MARA): closed at $20.24 (+8.53%), -3.95% to $19.44
- Riot Platforms (RIOT): closed at $21.70 (+3.28%), -4.52% to $20.72
- Core Scientific (CORZ): closed at $19.21 (+3.73%), -2.6% to $18.71
- CleanSpark (CLSK): closed at $20.04 (+3.94%), -5.09% to $19.02
- CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $60.86 (+9.97%), -1.61% to $59.88
- Exodus Movement (EXOD): closed at $28.64 (+0.49%), -0.14% to $28.60
Crypto treasury companies
- Strategy (MSTR): closed at $315.47 (+3.5%), -3.96% to $302.98
- Semler Scientific (SMLR): closed at $26.33 (-1.75%), -1.71% at $25.88
- SharpLink Gaming (SBET): closed at $16.13 (+5.32%), -6.08% to $15.15
- Upexi (UPXI): closed at $6.48 (+2.05%), -6.64% to $6.05
- Lite Strategy (LITS): closed at $2.15 (-12.96%), -2.33% at $2.10
ETF Flows
BTC Spot ETF
- Daily net flow: -$326.4 million
- Accumulated net flows: $62.4 billion
- Total BTC holdings ~1.36 million
ETH Spot ETF
- Daily net flow: -$428.5 million
- Accumulated net flows: $14.49 billion
- Total ETH holdings ~6.84 million
Source: Farside Investors
while you were sleeping
