Bitcoin Just Flash Crashed Mitchell Duran Wed, October 7, 2026 at 1:47 PM EDT 2 min read NVDA -0.88% BTC-USD -2.57% CL=F -1.33% BTCUSD Trade NVIDIA on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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Bitcoin flash crashed late Tuesday around 8 p.m. ET after trading sideways between $88,000 and $82,500 since late September.
The king of crypto has recovered from the lows and is trading above $83,000 at the time of writing, but sentiment feels bearish once again. As with most crypto crashes, no one can quite figure out why this happened. It could be that the Strait of Hormuz is still closed, with little to no mention of it reopening anytime soon. Brent was over $100 around the time of the crash.
It could be that 10Y and 30Y yields are at their highest levels since 2001, with little sign of any relief.
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Or… it could be connected to the fact that the U.S. government moved about 1,164 BTC to Coinbase Prime in the last day, while 3,952 BTC was routed into fresh, intermediate wallets. The latter move is procedural, but the move to Coinbase Prime appeared to tip off short sellers, immediately wiping out 106,952 traders across crypto futures markets, per CoinGlass. Total liquidations, mostly long positions, hit $608.34 million over the 24-hour window.
To make things even worse for the Bitcoin and crypto bros, Changpeng Zhao, also known as CZ, posted on X on September 29 a well-known meme of him waking up to a glowing screen of green. This is meant to signal markets are about to go up.
Crypto veterans saw this as a counter-signal. Given how the markets flipped just a week later, with the anniversary of October 10, 2025 (when Bitcoin's bear market kicked off) days away, if you flipped bearish, you would have been right.
