Crypto Market Flash Crash Triggers $19 Billion in Liquidations
The crypto market experienced a significant flash crash on October 20, 2025, with Bitcoin dropping by 20% and altcoins losing between 50% to 80%. This led to over $19 billion in leveraged positions being liquidated, marking the largest liquidation event in crypto history.
Implications for Bitcoin and Crypto
- Analyst Rekt Fencer suggests the current cycle resembles the 2020 crash, which was triggered by COVID-19 lockdowns.
- The 2020 crash saw Bitcoin prices fall by over 50%, with a rapid recovery leading to new all-time highs by 2021.
- Despite higher liquidation volumes now, Fencer believes a similar recovery could occur, indicating a potential upcoming bull run.
The belief is that history may repeat itself, suggesting the market could be at the bottom of a bull run. An explosive rally might be imminent unless this marks the start of a bear market.
Fencer states, “History is about to repeat itself” and predicts a major move when market sentiment assumes recovery is over.
