Bitcoin news saw spot demand return from institutional buyers following the October 10 flash crash that liquidated approximately $30 billion in leveraged positions.
President Donald Trump posted on October 10, threatening China with 100% tariffs on imported goods.
The post responded to China’s threat to cut rare earth metal exports, which are critical to US technology manufacturing.
Traders turned to cryptocurrency markets as equity markets closed for the weekend.
Bitcoin prices fell sharply as leveraged positions faced automatic liquidation, triggering a downward spiral that pushed prices lower.
The market reversed as the Trump administration de-escalated the trade conflict. Bitcoin recovered to $115,000 by October 13, nearly erasing the decline from the weekend.
The short-term remains uncertain despite the recovery. Bitcoin traded at $110,712 as of press time, down nearly 4% since October 13 and 8.7% since October 10.
Nevertheless, investors are still considering an upward movement for the fourth quarter, particularly after spot demand for Bitcoin resumed following the crash.
Bitcoin News: Whale Accumulation, ETF Demand, and Corporate Interest Are Back
CryptoQuant reported on October 14 that stablecoin liquidity and whale accumulation remained strong following the crash.
USDT market capitalization rose $14.9 billion over 60 days, marking the fastest expansion pace since January.
The one-year change in whale holdings crossed above its one-year moving average on October 8, signaling renewed accumulation by large investors.
In Bitcoin news, CryptoQuant identified this metric as a historically bullish structural factor. Additionally, Bitcoin ETFs registered outflows following nine consecutive trading sessions with positive flows from September 29 to October 9.
According to Farside Investors’ data, the funds recorded $4.5 million in outflows on October 10 and $326.4 million on October 13.
Inflows resumed on October 14 with $102.7 million entering Bitcoin ETFs. The brief outflow period failed to offset the nearly $6 billion captured during the recent inflow streak.
Public traded companies also saw an opportunity to buy the dip. The cohort added 1,017 BTC to their treasuries between October 10 and 15, according to Bitcoin Treasuries data.
The corporate accumulation occurred as Bitcoin traded below pre-crash levels.
Jittery Short Term Does Not Affect the Long Term
Bitwise Chief Investment Officer Matthew Hougan warned on October 14 that short-term markets could remain “a little jittery.”
In further Bitcoin news, Market makers and liquidity providers typically pull back for several days following major volatility events, and the lack of liquidity could lead to exaggerated moves in either direction.
Traders are attempting to capitalize on this high volatility scenario. A Bitcoin whale opened a 5x short position on 1,240 BTC worth $140 million on Hyperliquid in the early hours of October 15. The liquidation price stood at $137,700.
This came a few hours after a whale had ramped its Bitcoin short to nearly $500 million.
The CIO noted that Bitcoin has increased in value by more than 350 times over the past decade and has consistently been the best-performing asset in every multi-year period since then.
Hougan also assessed whether the flash crash impacted Bitcoin’s long-term trajectory through three criteria. The first question examined whether major players collapsed during the selloff.
Channel checks with custodians and liquidity providers revealed that the damage remained contained to individual investors. Firms experienced losses but appeared positioned to survive.
The second evaluation focused on blockchain performance during high volumes. Decentralized exchanges, including Uniswap, Hyperliquid, and Aave, reported no losses.
In yet another Bitcoin news update, Binance refunded traders nearly $400 million following issues during the volatility. The third metric analyzed investor panic through inbox activity.
Hougan noted professional investors largely ignored the news while media and social media questions increased.
As a result, Hougan stated that long-term forces driving the market remained intact, including improving regulation, increasing institutional allocations, and growing awareness of markets disrupted by cryptocurrency.
Bitcoin gained 21% in 2025 through October 15, while the Bitwise 10 Large Cap Crypto Index rose 22%.
Despite the recent panic, Bitcoin’s momentum appears to be intact for the fourth quarter.