What happened?
Bitcoin bounced back above $110,000 on October 20 after recovering from the October 10 flash crash that sent prices from an all-time high near $126,300 down to about $104,000. That crash wiped out nearly $20 billion in leveraged positions and caused abrupt price swings across the market. Ethereum held key support around $3,920–$4,060 while XRP and Solana moved on ETF-related news and product announcements.
Who does this affect?
Leveraged traders and short-term speculators were hit hardest by the liquidations, while retail holders felt the volatility in their portfolios. Institutional players and ETF managers matter here too — funds like BlackRock’s IBIT are drawing huge inflows and institutional demand is shaping price action. Exchanges, market makers, and crypto-native treasuries (like Solana’s recent investments) also face big impacts from shifting liquidity and capital flows.
Why does this matter?
Momentum toward spot ETF approvals and big institutional inflows could unlock billions more into crypto markets and lift prices if regulators signal clarity. Fundamental upgrades like Ethereum’s Fusaka and Solana’s product moves improve long-term narratives, which can attract more institutional capital and reduce cyclical vulnerability. But the scale of recent liquidations shows leverage still fuels sharp short-term swings, so ETF rulings and news catalysts will likely drive near-term volatility and liquidity changes.