Crypto Market Plunges $560 Billion in 24 Hours: What Drives Bitcoin vs. Altcoins?

Oct. 10 Crypto Flash Crash: Wiston Capital on Bitcoin vs. Altcoins and What to Watch Now A sudden and severe market correction occurred on October 10, with the total crypto market value plummeting by over $560 billion (13.1%) in a matter of hours. According to Charlie Erith, a senior analyst at Wiston Capital, a leverage cascade drove the break, with altcoins hit hardest. "The market was already under pressure from the recent price surge, and then a perfect storm of factors came together to trigger a massive sell-off," Erith explained. "Altcoins were particularly vulnerable due to their relatively high valuations and lower liquidity." The flash crash saw Bitcoin (BTC) hold up relatively well, trading at $115,675.18 on October 10, while altcoins such as Ethereum (ETH), Binance Coin (BNB), and Solana (SOL) plummeted by as much as 17.70%, 11.49%, and 13.28% respectively. The sudden correction has raised concerns among investors about the stability of the crypto market and the potential for further volatility. Erith warned that the current market conditions are ripe for a "leverage cascade," where a small price movement triggers a chain reaction of sell orders, exacerbating the decline. "We're seeing a classic case of a leverage cascade, where traders who had taken on excessive risk are now being forced to liquidate their positions at increasingly lower prices," Erith said. "This can create a self-reinforcing cycle of selling, which can be difficult to stop." The flash crash has also highlighted the need for investors to exercise caution and prudence when navigating the crypto market. According to Erith, investors should focus on tracking key technical indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD). "We're watching these indicators closely to gauge the level of sentiment in the market," Erith said. "If we see a significant increase in buying pressure or a decrease in selling pressure, it could be a sign that the market is turning around." The current market conditions are likely to continue to be volatile, with many investors waiting for clearer signals before adding risk. As the crypto market continues to evolve and mature, one thing is certain: the need for careful analysis and prudent decision-making has never been more crucial. Background and Context The recent price surge in Bitcoin and other cryptocurrencies has led to concerns about a potential bubble. The sudden correction on October 10 has raised questions about the stability of the crypto market and the potential for further volatility. Additional Perspectives Other analysts have attributed the flash crash to a combination of factors, including a decline in global economic growth and a rise in interest rates. However, Erith's analysis suggests that the leverage cascade was the primary driver of the break. Current Status and Next Developments The crypto market is likely to remain volatile in the short term, with many investors waiting for clearer signals before adding risk. As the market continues to evolve and mature, it is essential for investors to stay informed and adapt their strategies accordingly. In conclusion, the October 10 flash crash serves as a stark reminder of the risks and uncertainties associated with investing in cryptocurrencies. By understanding the underlying factors driving market movements and exercising caution, investors can navigate this complex landscape with greater confidence. Attribution This article was written by Siamak Masnavi, AI Boost, and edited by Aoyon Ashraf. The quotes from Charlie Erith are based on an interview conducted on October 12, 2025. *Reporting by Coindesk.*