By Francisco Rodrigues (All times ET unless otherwise noted)
The crypto market has seen 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, hitting a low near $102,000 before rebounding 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% over the past 24 hours to 3,727 points. It underperforms BTC, which fell 2.8% during the same period.
Crypto market maker Wintermute said the sell-off took place in a tightly synchronized wave that tested the limits of perpetual contract trading platforms.
“Violent price movements quickly caused liquidity to disappear from the market as a whole,” Wintermute wrote. “As prices recovered from the decline, liquidity returned quickly.”
Sam MacPherson, CEO of Phoenix Labs and one of the main contributors to the Spark protocol, told CoinDesk that volatility “served as a real-time stress test for DeFi’s underlying infrastructure. He added that “prime collateral played a major role here, acting as a stabilizing foundation during the market upheaval.”
Despite the chaos, there are signs of persistent 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 saw more than $3.1 billion in net inflows last week, according to CoinShares. Spot Bitcoin ETFs saw outflows of $326 million yesterday, showing investor nervousness.
With the ongoing US government shutdown, the macroeconomic front is expected to have little influence on the market for now. Fed Chairman Powell will speak later today, and traders will be watching him for clues about the central bank’s view on tariffs.
Instead, the focus will remain on how China will respond to additional tariffs imposed by Trump. Stay vigilant!
What to watch
For a more comprehensive list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
- Cryptocurrency
- Macro
- October 14, 12:20 p.m.: Federal Reserve Chairman Jerome Powell speaks at the National Association for Business Economics (NABE) annual meeting in Philadelphia, Pennsylvania.
- Earnings (Estimates based on FactSet data)
Token Events
For a more comprehensive list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
- Votes and calls on governance
- The Sandbox DAO votes to allow the sale of properties by allowing LAND owners to consolidate and sell multiple parcels through the GBM x Sandbox marketplace. Voting closes on October 15.
- Unlocks
- Token Launches
- October 14: Launch of SANDchain, an Ethereum layer 2 powered by zk.
Conferences
For a more comprehensive list of this week’s events, check out CoinDesk’s “Crypto Week Ahead.”
Symbolic discussion
By Olivier Knight
- Plasma fell another 13.5% on Tuesday, extending 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.
- The circulating supply stands at 1.8 billion compared to the total of 10 billion, pointing to years of potential selling pressure as acquired tokens are unlocked.
- The tokens were sold in the public round at $0.05 each, leaving ICO buyers comfortably in profit at current prices of around $0.41.
- Investors who bought after the listing are facing heavy losses amid weak market sentiment.
- Analysts expect continued downward pressure once early investors’ tokens become fully liquid, ICOdrops data shows a major unlock will occur in the second quarter of 2026.
Positioning of derivative products
- The BTC futures market appears to be stabilizing following its recent volatility. Open positions stabilized around $25.5 billion, showing no major changes from yesterday after the weekend’s significant drop. The 3-month annualized basis is now trading in a 5-6% lower range, down from the previous rebound and indicating a slight cooling of bullish sentiment. A key divergence remains in funding rates, with Bybit’s rate turning negative at -5%, while Hyperliquid’s rate remains positive at 10%. This suggests mixed and complex market sentiment, with strong but isolated long and short convictions across different platforms.
- The BTC options market is showing significant bullish acceleration. The 24-hour Put/Call volume is now roughly balanced at a 50-50 split, meaning it was no longer dominated by calls, while the 1-week 25 Delta Skew has climbed dramatically to 12.62%. This strong positive skew indicates a substantial premium for calls over puts, showing that traders are aggressively positioning for higher prices and are willing to pay a premium for bullish exposure.
- Data from Coinglass shows $627 million in liquidations over 24 hours, 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 liquidations. The Binance liquidation heatmap shows $110,600 as the base liquidation level to watch, in case of a price decline.
Market movements
- BTC is down 3.86% from 4 p.m. ET Monday at $111,363.19 (24 hours: -3.22%)
- ETH is down 7.01% at $3,991.50 (24 hours: -4.3%)
- CoinDesk 20 is down 6.02% at 3,712.40 (24h: -3.74%)
- Ether CESR composite staking rate down 1bp to 2.91%
- BTC funding rate is 0.0008% (0.8924% annualized) on Binance
- The DXY is up 0.17% at 99.43
- Gold futures are up 0.14% at $4,138.90
- Silver futures are up 0.14% at $50.50
- The Nikkei 225 closed down 2.58% at 46,847.32
- Hang Seng closed 1.68% lower at 25,455.05
- The FTSE is down 0.32% at 9,412.64
- The Euro Stoxx 50 is down 1.02% at 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
- The Nasdaq Composite closed up 2.21% at 22,694.61
- The S&P/TSX Composite Index closed down 1.38% at 29,850.89
- The S&P 40 Latin America closed up 1.72% at 2,833.94
- The 10-year U.S. Treasury yield is down 3 basis points at 4.021%
- E-mini S&P 500 futures are down 0.91% at 6,633.75
- E-mini Nasdaq-100 futures are down 1.14% at 24,638.75
- The E-mini Dow Jones Industrial Average is down 0.57% at 46,032.00
Bitcoin Statistics
- BTC dominance: 59.52% (0.86%)
- Ether/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
- Open Interest on CME Futures: 140,690 BTC
- BTC valued in gold: 26.9 ounces
- BTC vs. gold market capitalization: 7.59%
Technical analysis
- TAO has been one of the best performing assets over the past week, with prices rebounding to levels seen before the October 10 breakout.
- The asset managed to reclaim the 50-week EMA and break its daily downtrend, closing at $447 yesterday. However, this area closely aligns with the annual open, 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 for price to maintain support above the 50-week EMA, confirming the change in trend strength.
Crypto Stocks
- Coinbase Global (COIN): Closed Monday at $356.99 (-0.01%), -3.83% at $343.31 in pre-market
- Circle Internet (CRCL): closed at $137.47 (+3.41%), -3.09% at $133.22
- Galaxy Digital (GLXY): closed at $41.23 (+4.7%), -4.22% at $39.49
- Bullish (BLSH): closed at $59.55 (-1.42%), -4.2% at $57.05
- MARA Holdings (MARA): closed at $20.24 (+8.53%), -3.95% at $19.44
- Riot Platforms (RIOT): close at $21.70 (+3.28%), -4.52% at $20.72
- Core Scientific (CORZ): closed at $19.21 (+3.73%), -2.6% at $18.71
- CleanSpark (CLSK): closed at $20.04 (+3.94%), -5.09% at $19.02
- CoinShares Valkyrie Bitcoin Miners ETF (WGMI): Closed at $60.86 (+9.97%), -1.61% at $59.88
- Exodus Movement (EXOD): closed at $28.64 (+0.49%), -0.14% at $28.60
Crypto Cash Companies
- Strategy (MSTR): closed at $315.47 (+3.5%), -3.96% at $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% at $15.15
- Upexi (UPXI): closed at $6.48 (+2.05%), -6.64% at $6.05
- Lite Strategy (LITS): closed at $2.15 (-12.96%), -2.33% at $2.10
ETF Feed
Spot BTC ETF
- Daily net flow: -$326.4 million
- Cumulative net flows: $62.4 billion
- Total BTC holdings ~1.36 million
ETH Spot ETF
- Daily net flow: -$428.5 million
- Cumulative net flows: $14.49 billion
- Total ETH holdings ~6.84 million
Source: Farside Investors
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