Bitcoin’s October flush caused by the Binance glitch and $28 billion deleveraging may be over as Cathie Wood sees a shallow cycle, institutional demand, and a rally ahead.
summary
- Binance software glitch causes record $28 billion Bitcoin deleveraging and 14% $BTC dive.
- Wood calls this the “shallowest” Bitcoin drawdown in four years. $BTC Consolidating between 80,000 and 90,000 euros before a new uptrend.
- Currently, institutions treat Bitcoin as a non-correlated asset. $ARK Targeting $16 trillion $BTC Market value by 2030.
Bitcoin ($BTC) The recent shakeout may be over, but the blame game is just beginning. $ARK Investos’ Cathie Wood pointed directly at Binance, arguing that October’s intense “flush” has largely run its course and may have set the next high for the market’s benchmark asset.
Binance glitch, historical flash
Wood told Fox Business that Bitcoin’s recent downturn was “primarily due to a software glitch at Binance” that caused about “$28 billion of deleveraging” after the October 10, 2025 flash crash. The event remains the largest single-day deleveraging in crypto history, with more than $19 billion in leveraged positions liquidated as Bitcoin fell about 14% from over $122,000 to about $105,000 and Ethereum fell more than 20% in a matter of hours.
The decline started with the sudden announcement of additional tariffs on Chinese goods by the US, but the microstructure of the exchange rate caused significant damage. The report details how Binance’s pricing system “struggling under extreme volatility,” with some tokens briefly trading near zero and causing cascading margin calls, a dynamic that Wood described as “a systemic shock rather than normal market volatility.”
The “shallowest” cycle, the institutional turn
Wood now argues that the worst of a forced sale is behind the market. He added that Bitcoin’s “unwind” from October 10 is “almost complete” and that Bitcoin is likely to stabilize in the $80,000-$90,000 range as the downside of this four-year cycle nears exhaustion before returning to a broader uptrend. She called the current drawdown the “shallowest four-year decline” in Bitcoin’s history, and described the asset as “a combination of three revolutions: a rules-based international monetary system, technological advances, and a leading asset in a new asset class.”
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very important $ARKIn his paper, Wood argued that big capital is no longer debating whether Bitcoin belongs in a portfolio. Institutional investors are no longer “debating the legitimacy of Bitcoin” and are instead sizing positions in what he terms “low-correlation assets.” More than 2,000 U.S. advisory firms now have allocations to crypto ETPs, up from less than 200 before 2024, while custodians hold an estimated 5-7% of outstanding Bitcoin. $ARKThe Big Ideas 2026 Blueprint pegs Bitcoin’s potential market value at $16 trillion by 2030.
In her own products, $ARK 21Shares ETF’s Mr. Wood bluntly said the company was “going to win” and argued that support levels should remain as the final aftershocks of October’s deleveraging subside.
Market Snapshot: Majors in the red
Despite Wood’s optimism, spot prices remain under pressure. Bitcoin is trading around 78,700 euros, down about 3% from around 80,730 euros 24 hours ago. Ethereum traded at around 2,648 euros, down about 4% from 2,757 euros over the same period. Solana is trading near 199 euros, a modest move of around -0.22% in 24 hours after rising 16.5% over the past week.
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