Altcoins Cratered in Oct. 10 Crypto Flash Crash as Bitcoin Held Up, Wiston Capital Says
The crypto markets just experienced one of those classic bloodlettings that separates the men from the boys, or more accurately, Bitcoin from the altcoin noise. According to Charlie Erith of Wiston Capital, the October 10th flash crash was a brutal, leverage-fueled cascade that eviscerated the altcoin space while Bitcoin, true to its nature, stood its ground with stoic resilience.The data is stark: in a mere 25-minute window, the market excluding Bitcoin, Ether, and stablecoins plunged a stomach-churning 33% before managing a feeble bounce to a 10. 6% loss.Since October 6th, a staggering $560 billion has been vaporized from the total crypto market cap, a 13. 1% haircut facilitated by a monumental $18.7 billion in liquidations. While some point to President Trump's Truth Social post threatening a 100% tariff on Chinese imports as the immediate trigger, Erith astutely notes the slide was already in motion; a distinct frailty had permeated crypto while equities blissfully climbed, a divergence that served as a stark warning for those paying attention.This is the eternal story of crypto, a recurring narrative where weak hands and over-leveraged speculators in speculative altcoins get washed out, while Bitcoin demonstrates its foundational strength. It’s not that Bitcoin didn’t fall—it did—but its decline was modest, comparable to large-cap tech stocks, and paled in comparison to the immense technical damage absorbed by the long tail of non-bitcoin tokens.This dynamic naturally boosted Bitcoin's market share, a metric I’ve long championed as the only one that truly matters. Erith’s fund, wisely positioned defensively, emerged largely unscathed, a testament to the simple strategy of sticking with the prime asset.What’s next? All eyes should be on Bitcoin’s 365-day exponential moving average, a critical line in the sand that has historically separated bullish regimes from corrective ones. A pullback towards the $100,000 area that touches this average wouldn't necessarily break the long-term bullish structure, but a sustained break below it would signal a much deeper and more painful reset is underway.Furthermore, the accelerating rotation towards higher-liquidity assets, lifting Bitcoin dominance, is a powerful signal. When the tide goes out, capital flees the illiquid, high-beta junk and rushes back to the safety of the bedrock—Bitcoin.A continued rise in Bitcoin's market share alongside weak breadth across the rest of the crypto landscape is a clear argument for extreme caution, a time to avoid the siren song of cheap altcoins until their charts show genuine signs of repair. Beyond Bitcoin’s own price action, Erith highlights the Strategy equity as a proxy for leverage and sentiment; a decisive break below its 365-day average preceded a major drawdown four years ago, and holding above it now would support the resilience narrative.The climbing VIX, the equity 'fear index,' also suggests patience is paramount; historically, the best entries come when volatility truly spikes, not during its initial creep upwards. Erith’s stance is prudent: remain invested but avoid leverage and carry cash, waiting for the dust to settle.Moves of this magnitude often precede broader downturns, and increasing exposure before key signals stabilize is a fool's errand. The takeaway is crystal clear and one that Bitcoin maximalists have echoed for years: in times of crisis, there is Bitcoin, and then there is everything else. This flash crash was merely another stress test, and once again, Bitcoin’s growing resilience was the only thing that held up, while the altcoin casino crumbled under the weight of its own speculative excess.
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