Bitcoin Flash Crash Called Temporary by Bitwise

Bitwise Chief Investment Officer Matt Hougan says that last week's crypto market flash crash was a temporary event, not a sign of deeper structural problems. The turmoil began late Friday when President Trump posted on Truth Social about imposing 100% tariffs on Chinese imports, causing traders to react and Bitcoin to tumble as leveraged positions unwound in a cascade.

The liquidation, which represented the largest known in crypto history, saw Bitcoin fall 15% towards $100,000 on some exchanges at its worst point. However, by Monday morning, Bitcoin recovered to around $115,000 after Trump seemingly attempted to de-escalate tensions.

Hougan noted that while there were significant losses, they appeared contained to individual traders rather than large institutions or service providers. Firms experienced losses but appear to have all survived, which helped the market recover quickly.