Crypto Crash Wipes Out $600 Million: Bitcoin Holds, Altcoins Bleed

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Bitcoin traded around $105,200 today, struggling to recover from last week’s flash crash that shook the entire crypto market. Bitcoin led the losses with about $344 million wiped out, followed by Ethereum at $201 million and Solana at $97 million. 

Other major tokens like XRP and Dogecoin also saw tens of millions cleared from open interest as the sell-off erased massive leveraged bets across the market.

Most altcoins are still deep in the red, while fear levels among traders are at their highest in months. The sudden drop brought back memories of the March 2023 sell-off when market stress hit both crypto and traditional finance.

Altcoins Suffer Heavy Losses

According to crypto analyst VirtualBacon, the recent crash was one of the most intense he has seen in eight years of trading. Almost every altcoin was hit hard. XRP lost nearly 50% in just an hour, and even strong names like Cardano, Chainlink, and Avalanche faced heavy liquidations. 

Interestingly, Bitcoin held firm, while Ethereum and Solana managed to survive the chaos. He explained that this was not a global crash but an altcoin-only flush that cleared excess leverage from the market.

Not Like The 2020 Or 2021 Crypto Crashes

Many traders compared this drop to the 2020 COVID crash or the May 2021 market collapse. However analyst disagreed, saying this time the situation is very different. In 2020, everything fell together, including stocks and gold. In 2021, Bitcoin was already in a downtrend. Now, stocks and gold are doing well, and only crypto has been hit. He said this was more of a crypto credit event rather than a full market meltdown.

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Despite the fear, he believes Bitcoin’s structure remains solid. The coin touched its 20-week moving average and bounced back, while the 50-week average near $102K still remains untested. He said the bull market will remain safe as long as Bitcoin stays above $100K. Below that level, the risk of deeper correction increases.

Altcoins Could Rebound Soon

He further noted that Bitcoin dominance has risen but is still following a downtrend pattern. Based on past trends, October usually brings slow movement for altcoins, while November and December often bring strong rallies. The recent flush may have only reset the market sentiment, preparing the ground for the next move up.

“Fear Is Temporary, Liquidity Isn’t”

On the macro side, he pointed out that conditions are improving. Two rate cuts are expected before the end of the year, and global liquidity is starting to rise again. He believes liquidity drives prices, and Bitcoin will follow soon.

The analyst ended on an optimistic note, saying everyone is afraid to buy altcoins, and that is exactly why he is.

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