
Weekly crypto update : $20B flash crash rocks markets before rebound; BTC holds $109K, Powell’s dovish speech signals rate cuts
Author: Chirag Sharma
The crypto market endured another rollercoaster week (Oct 13–20, 2025) — swinging between Fed-driven optimism and a record-breaking flash crash that shook investors worldwide. Total market capitalization fell below $3.7T midweek before rebounding to ~$3.7T, reflecting a modest 2.08% daily recovery but lingering uncertainty. We will cover key reasons and major movers in this weekly crypto update.
Total 24h trading volume spiked to $128.3B (+4.56%), driven by panic selling and opportunistic dip buying. The Fear & Greed Index held at 27 (Fear), while BTC dominance sat at 58.9% and ETH at 12.7%, underscoring capital concentration in majors.
Federal Reserve Chair Jerome Powell’s October 14 speech at the NABE annual meeting in Philadelphia struck a decidedly dovish tone, signaling a clear shift in policy.
Markets initially pumped pre-speech, then cooled, but sentiment turned long-term bullish. Looser monetary policy historically drives liquidity inflows into risk assets, bolstering Bitcoin and Ethereum outlooks heading into Q4.
The upcoming October 28–29 FOMC meeting now carries a 95% probability of a 25 bps rate cut (to 3.75%–4.00%), per CME FedWatch. Internal Fed debate continues, with Governor Miran pushing for 50 bps, while Waller and Musalem favor a measured 25 bps cut — a split that will shape November’s tone.
Volatility peaked October 10–11, when markets witnessed a $19–20B value wipeout — the largest single-day liquidation event in crypto history.
Analysts traced the crash to automated liquidations, high leverage, and algorithmic trading spirals, though on-chain forensics suggest coordinated shorting or bot-driven panic amplified the drop.
Despite the chaos, fundamentals strengthened:
Overall, liquidity and adoption metrics reinforced long-term conviction even amid wild short-term swings.
$XPIN (+311%) – AI-driven DEX surge amid Uptober volatility.
$H (+131%) – Layer-1 integrations expanded real-world adoption.
$MYTH (+76%) – NFT ecosystem rebound.
$LA (+37%) – Governance upgrades increased activity.
$BLESS (+24%) – Stable expansion in daily user growth.

$COAI (–61%) – Heavy profit-taking after prior rally.
$NMD (–36%) – Selling pressure post-launch hype.
$ATH (–32%) – Overbought region triggered correction.
$AVNT (–26%) – Volume drop after speculative push.
$FET (–24%) – Weak sentiment amid AI token correction.
This weekly crypto update captures Uptober’s volatility at its peak: a record liquidation event met by strong institutional resilience and dovish macro winds. Powell’s remarks reaffirmed liquidity tailwinds, while Bitcoin’s quick rebound above $108K hints at deep underlying strength.
Short-term uncertainty lingers heading into the FOMC meeting, but structurally, Q4 remains bullish. Fed easing, ETF flows, and ecosystem growth all point toward renewed upward momentum — as long as investors manage risk amid the turbulence.
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