Bitcoin experienced a sudden downturn on October 10, 2025, falling below $80,000, with $20 billion liquidated, following disputes among key industry figures over Binance’s USDe integration.
The incident raises concerns about exchange-specific risks, affecting broader market stability and investor sentiment, as related assets also saw downturns, highlighting vulnerabilities in digital currencies.
Bitcoin Falls Below $80,000 Triggering $20B Liquidations
The “10/10 crash” saw Bitcoin drop below $80,000, causing $20B in liquidations. The incident resulted from Binance’s USDe integration, with major industry figures involved in public disputes.
Star Xu accused Binance of creating a manufactured risk with its uncapped 12% APY USDe campaign. Changpeng Zhao dismissed these claims, suggesting the marketwide impact was harmful to all.
Binance’s $1B Move Amidst Altcoin Declines
The crash led to broader market declines, with altcoins and Ethereum experiencing significant losses. Binance announced a $1B Bitcoin conversion to stabilize the ecosystem.
Potential financial and regulatory outcomes include increased scrutiny on high APY campaigns. Historical trends show such unwindings can trigger chain reactions. Expert opinions suggest long-term recovery is possible. “The depeg was exchange-specific… ~$20B wiped out in chain reactions.” — Star Xu, CEO, OKX.
Exchange-Specific Crises Highlight Market Vulnerabilities
Similar to past events like the 2022 leveraged unwinding, the 10/10 crash was primarily exchange-specific rather than systemic. Such events highlight vulnerabilities in the crypto market.
Experts from Kanalcoin emphasize the importance of resilience and adaptability in cryptocurrency strategies. Analysis of data suggests awareness of market dynamics can mitigate future impacts.
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