Altcoins Plunge 33% in Flash Crash, Bitcoin Shows Resilience

Recent crypto sell-off led to a fast and leverage-driven decline, significantly impacting altcoins while Bitcoin showed more resilience. Key points from Wiston Capital Founder Charlie Erith include:

The market excluding Bitcoin, Ethereum, and stablecoins dropped about 33% in 25 minutes on Oct. 10 before recovering to a 10.6% loss.
Approximately $560 billion (13.1%) was wiped from the total crypto market value since Oct. 6, with $18.7 billion in liquidations.
Trigger linked to former President Trump's tariff threat on Chinese imports; however, the market was already showing signs of weakness.
Bitcoin's performance aligned with expectations, maintaining its long-term uptrend and increasing market share amid broader altcoin declines.

Future Indicators to Watch

Bitcoin’s 365-day exponential moving average as a critical line for bullish versus corrective phases.
Increased Bitcoin market dominance could indicate caution toward high-beta tokens until recovery.
Strategy’s equity level serves as a proxy for ecosystem leverage and sentiment.
Volatility measured by VIX suggests better entry points when spikes occur, advising patience in adding risk.
Erith remains invested but is avoiding leverage, holding cash until signals stabilize.

Overall, while altcoins suffered heavy losses, Bitcoin’s minimal decline shows growing resilience comparable to large-cap tech stocks.