Bitcoin crash: Plunge to 101k and leverage liquidation

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Hi, this is John, and I'll be sharing the latest updates on the Bitcoin crash.

Hello, I'm John, a blogger who enjoys exploring the world of cryptocurrencies. Today, I'll be explaining the Bitcoin flash crash (a sudden price fluctuation) that occurred in October 2025 in an easy-to-understand way, even for beginners. Please start by getting a grasp of the big picture, and then feel free to continue reading.

Bitcoin prices sometimes fluctuate dramatically, but the latest crash has attracted particular attention. The reason this topic is important now is that understanding market volatility (price fluctuations) can provide clues for smarter trading. Let's look back at past cases to organize what is happening now and what the future holds. If you are considering opening an account for the first time, it's a good idea to first understand the tips for choosing an exchange that won't disappoint you. Here's an easy-to-understand comparison of major services:How to Choose and Compare Cryptocurrency Exchanges for Beginners

What is the Bitcoin Flash Crash? A little background

The price of Bitcoin fluctuates significantly due to market supply and demand and external factors. While there have been previous crashes during the COVID-19 pandemic in 2020, as of October 11, 2025, the October 10 crash has broken a new record. This crash saw the price of Bitcoin temporarily fall to $101,000 (equivalent to approximately 15 million yen).

The cause of the crash is said to be the announcement of new tariffs on China by US President Donald Trump, which has created uncertainty across the market and had a knock-on effect on the cryptocurrency market. As reported by CryptoSlate, the crash led to the forced liquidation of over $7 million in leveraged positions (a method of expanding trading using debt).

A closer look at the crash: By the numbers

During the flash crash on October 10, 2025, Bitcoin briefly fell more than 10%, dropping to $101,500, before partially recovering and trading around $112,500. According to TradingView News, more than $5.39 million in leveraged positions were wiped out in 24 hours, twice the size of the 2020 COVID-19 crash.

A Forbes article reported that the crash was triggered by trade tensions due to Trump's announcement of tariffs. CoinGlass data also indicated that up to $19 billion in positions were wiped out, causing significant losses across the market. Other currencies, including Ethereum, also saw declines of over 10%.

Impact and Market Reaction: Learning the Risks of Leverage

The impact of the crash was concentrated on traders who engaged in leveraged trading (making large trades with small capital). According to CoinDesk, changes in global monetary policy could increase Bitcoin's stability now that the previous four-year cycle has been broken, but sudden fluctuations remain a challenge.

Currently, exchanges are experiencing increased system loads, and major exchanges like Binance have issued warnings. Investors are becoming increasingly aware of the dangers of leverage. Please note that cryptocurrency investments carry a high risk of price fluctuations and may result in losses. Invest at your own risk.

Signs of recovery and future outlook

Since the crash, Bitcoin has gradually recovered, rebounding from $103,000 as of October 11, 2025. An analysis by The Economic Times suggests that if it can maintain above $117,000, it could rise to $135,000. However, continued trade friction between the US and China is a factor that could cause future fluctuations.

Looking ahead, institutional ETF (exchange-traded fund) inflows and seasonal bullish trends could be positive. Arthur Hayes' CoinDesk article points out that the traditional four-year cycle has ended and increased liquidity will prevent a crash. However, there are many unpredictable factors, so we should monitor the market carefully.

Risk management and utilization tips: Let's get practical

To avoid such crashes, beginners should take basic precautions. It is effective to keep leverage low and diversify investments. Below are some simple tips for you to use.

Keep your position size small: no more than 1-2% of your total capital to limit your losses.
Set a stop loss: Predetermine the price at which you will automatically sell to prevent losses in the event of a sudden drop.
Check the news: Get the latest updates on US-China relations and policy changes from trusted sources.
Consider long-term holding: Rather than short-term trading, a holding strategy can help you weather fluctuations.

For security reasons, be sure to enable two-factor authentication on your exchange. To comply with regulations, use a service registered with the Financial Services Agency in Japan.

Frequently Asked Questions: Clear your mind with Q&A

Finally, here are some questions readers often ask: Are flash crashes really that common? No, they are decreasing as the market matures, but the possibility of them happening is not zero. What will happen next? Experts predict an upswing, but there is no guarantee.

Is leveraged trading suitable for beginners? No, you should start with spot trading (spot trading). Let's have fun learning while clearing up these questions.

The recent Bitcoin crash has once again taught us the dynamism of the market. As John, I think it's important to have the mindset to turn these fluctuations into opportunities. Don't rush, gradually gain knowledge and enjoy the world of virtual currency. If you're unsure which company to start with, compare fees, the stocks they handle, and ease of use of the UI. For a detailed comparison,click here.

This article has been compiled and fact-checked by the author, based on the following original articles and public information:

How to choose and compare cryptocurrency exchanges for beginnersclick here .

Bitcoin Shock! $70 Billion Erased as Price Drops to 101k