RockTober: cryptocurrency flash crash and cross-market volatility test investors

Cryptocurrency market turmoil

October 2025 has lived up to its 'RockTober' reputation, delivering a rollercoaster of heightened volatility that has tested investors across multiple asset classes.

For the cryptocurrency sector, the month began with euphoric highs before spiralling into a dramatic flash crash that wiped out billions in market value. The turbulence has not been limited to digital currencies; it has also affected the United States (US), regional banks, and precious metals markets.

Massive market wipeout and the safe haven paradox

Cryptocurrency's troubles began on 10 – 11 October, when a sudden flash crash erased more than $370 billion of market capitalisation in hours. Triggered by US President Donald Trump’s surprise announcement of escalated tariffs on Chinese imports, the event ignited a cascade of liquidations across leveraged positions, marking the largest 24-hour wipeout in cryptocurrency history.

Bitcoin (BTC) plunged from a pre-crash high near $122,500 to an intraday low below $110,000, a drop of over 10%, while Ethereum (ETH) fared worse, sliding roughly 20% from $4400 to an intraday low near $3500.

The irony is that cryptocurrencies and precious metals are often touted as safe havens against fiat depreciation and geopolitical shocks. Both asset classes rallied spectacularly in preceding months, drawing waves of fear of missing out (FOMO) buying and overextended leveraged positions, setting the scene for this month’s pullback.

Market sentiment and future outlook

Sentiment remains cautious, with concerns mounting regarding what might be the next overextended domino to fall. Bitcoin is down 4.86% month-to-date, surrendering nearly all of September’s 5.86% advance, while Ethereum has slid 6.51% this month after a 5.64% decline in the prior month.

Bitcoin technical analysis

As can be viewed on the monthly chart below, Bitcoin again rejected the multi-month trendline resistance currently near $126,500 (dating back to the $19,666 high of December 2017), before falling 18% into last week's $103,530 low.

Bitcoin monthly candlestick chart

Bitcoin has since found firmer ground, reclaiming the 200-day moving average at $108,042. However, it needs to establish support above this level, and then break above the multi-month trendline resistance at $126,500 to suggest the uptrend has resumed, with potential to reach $150,000.

Until then, the risks are for the correction in Bitcoin to deepen into the mid-$90,000s.

Bitcoin daily candlestick chart

• Source: TradingView. The figures stated are as of 22 October 2025. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.