By Francisco Rodrigues (All times ET unless indicated otherwise)The crypto market staged a fragile recovery after a violent flash crash on Friday erased more than $500 billion in value and forced nearly $20 billion in liquidations across derivatives platforms.Bitcoin fell as much as 13% in an hour, bottoming near $102,000 before rebounding to now trade above $111,800. The broader market, as measured by the CoinDesk 20 (CD20) Index, climbed 11.8% from this week’s bottom, but dropped 3.5% in the last 24 hours to 3,727 points. It’s underperforming BTC, which dropped 2.8% in the same period.Crypto market maker Wintermute said the sell-off unfolded in a tightly synchronized wave that tested perpetual contract trading platforms’ limits.“Violent price movement quickly led to liquidity disappearing from the broader market,” Wintermute wrote. “As prices post the drawdown recovered, liquidity came back rapidly.”Sam MacPherson, CEO of Phoenix Labs and a core contributor to the Spark protocol, told CoinDesk that the volatility “served as a real-time stress test for DeFi’s underlying infrastructure.” He added that “Blue chip collateral played a major role here, acting as a stabilising base through the market shakeout.”Despite the chaos, signs point to continued institutional conviction. Citi reportedly plans to launch crypto custody services in 2026, aligning with a broader push by Wall Street to offer regulated digital asset products. At the same time, investment bank China Renaissance is raising $600 million for a BNB-focused investment vehicle in partnership with YZi Labs.Fund flows also remain resilient. Crypto investment products saw over $3.1 billion in net inflows last week, according to CoinShares. Spot bitcoin ETFs saw $326 million of outflows yesterday, showing jitters among investors.With the U.S. government shutdown ongoing, the macro front should have little influence over the market for the time being. Fed Chair Powell is speaking later today, and traders will be monitoring it for clues on the central bank’s views on tariffs.The focus will instead remain on how China responds to Trump’s additional tariffs. Stay alert!What to WatchFor a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead".CryptoOct. 14, 8 a.m.: Swellchain (SWELL) undergoes Optimism Superchain U16A upgrade; pending withdrawals to Ethereum L1 temporarily invalidated.Oct. 14, 12 p.m.: The dYdX Foundation is hosting its October 2025 Analyst Call on YouTube.Oct. 14, 1 p.m.: Solana-powered DEX Orca is hosting a fireside chat on X discussing xORCA, a new liquid staking token.MacroOct. 14, 12:20 p.m.: Federal Reserve Chair Jerome Powell speaks at the National Association for Business Economics (NABE) annual meeting in Philadelphia, Pa.Earnings (Estimates based on FactSet data)Nothing scheduled.Token EventsFor a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead".Governance votes & callsThe Sandbox DAO is voting to enable estate sales by letting LAND owners bundle and sell multiple parcels via the GBM x Sandbox marketplace. Voting ends Oct. 15.UnlocksNo major unlocks.Token LaunchesOct. 14: SANDchain, a zk-powered Ethereum layer-2, launches.ConferencesFor a more comprehensive list of events this week, see CoinDesk's "Crypto Week Ahead".Day 2 of 3: Digital Asset Summit 2025 (London)Oct. 14: The Future of Finance Tokenisation Event 2025 (London)Day 1 of 4: DC Fintech Week 2025 (Washington)Token TalkBy Oliver KnightPlasma (XPL) fell another 13.5% on Tuesday, extending its losses to 52% since debuting in late September.The stablecoin-focused layer-1 blockchain faces skepticism over its tokenomics and large “ecosystem & growth” allocations.Circulating supply stands at 1.8 billion against a total of 10 billion, pointing to years of potential sell pressure as vested tokens unlock.Tokens were sold in the public round at $0.05 each, leaving ICO buyers comfortably in profit at current prices of around $0.41.Investors who bought after exchange listings are facing steep losses amid weak market sentiment.Analysts expect continued downward pressure once early investor tokens become fully liquid, ICOdrops data shows a major unlock will occur in Q2 of 2026.Derivatives PositioningThe BTC futures market appears to be stabilizing following its recent volatility. Open interest has settled around $25.5 billion, showing no major change from yesterday after the weekend's significant drop. The 3-month annualized basis is now trading in a lower range of 5-6%, a drop from its earlier rebound and indicating a slight cooling of bullish sentiment. A key divergence remains in funding rates, with Bybit's rate turning negative at -5%, while Hyperliquid's remains positive at 10%. This suggests a mixed and complex market sentiment, with strong but isolated long and short conviction across different platforms.The BTC options market is showing a significant bullish acceleration. The 24-hour Put/Call Volume is now roughly balanced at a 50-50 split, a shift from being call-dominated, while the 1-week 25 Delta Skew has spiked dramatically to 12.62%. This high positive skew indicates a substantial premium for call options over puts, showing that traders are aggressively positioning for upside price action and are willing to pay a premium for bullish exposure.Coinglass data shows $627 million in 24 hour liquidations, with a 70-30 split between longs and shorts. ETH ($185 million), BTC ($125 million) and Others ($69 million) were the leaders in terms of notional liquidations. Binance liquidation heatmap indicates $110,600 as a core liquidation level to monitor, in case of a price drop.Market MovementsBTC is down 3.86% from 4 p.m. ET Monday at $111,363.19 (24hrs: -3.22%)ETH is down 7.01% at $3,991.50 (24hrs: -4.3%)CoinDesk 20 is down 6.02% at 3,712.40 (24hrs: -3.74%)Ether CESR Composite Staking Rate is down 1 bps at 2.91%BTC funding rate is at 0.0008% (0.8924% annualized) on BinanceDXY is up 0.17% at 99.43Gold futures are up 0.14% at $4,138.90Silver futures are up 0.14% at $50.50Nikkei 225 closed down 2.58% at 46,847.32Hang Seng closed down 1.68% at 25,455.05FTSE is down 0.32% at 9,412.64Euro Stoxx 50 is down 1.02% at 5,511.68DJIA closed on Monday up 1.29% at 46,067.58S&P 500 closed up 1.56% at 6,654.72Nasdaq Composite closed up 2.21% at 22,694.61S&P/TSX Composite closed down 1.38% at 29,850.89S&P 40 Latin America closed up 1.72% at 2,833.94U.S. 10-Year Treasury rate is down 3 bps at 4.021%E-mini S&P 500 futures are down 0.91% at 6,633.75E-mini Nasdaq-100 futures are down 1.14% at 24,638.75E-mini Dow Jones Industrial Average Index are down 0.57% at 46,032.00Bitcoin StatsBTC Dominance: 59.52% (0.86%)Ether to bitcoin ratio: 0.03572 (-3.07%)Hashrate (seven-day moving average): 1,052 EH/sHashprice (spot): $46.91Total Fees: 2.87 BTC / $330,491CME Futures Open Interest: 140,690 BTCBTC priced in gold: 26.9 ozBTC vs gold market cap: 7.59%Technical AnalysisTAO has been one of the top-performing assets over the past week, with prices rebounding to levels seen prior to the October 10 breakdown. The asset has successfully reclaimed the 50-week EMA and broken its daily downtrend, closing at $447 yesterday. However, this area aligns closely with the yearly open, which is currently acting as short-term resistance. For bullish continuation, traders will want to see a weekly close above the $390 level and for price to maintain support above the 50-week EMA, confirming the shift in trend strength.Crypto EquitiesCoinbase Global (COIN): closed on Monday at $356.99 (-0.01%), -3.83% at $343.31 in pre-marketCircle Internet (CRCL): closed at $137.47 (+3.41%), -3.09% at $133.22Galaxy Digital (GLXY): closed at $41.23 (+4.7%), -4.22% at $39.49Bullish (BLSH): closed at $59.55 (-1.42%), -4.2% at $57.05MARA Holdings (MARA): closed at $20.24 (+8.53%), -3.95% at $19.44Riot Platforms (RIOT): closed at $21.70 (+3.28%), -4.52% at $20.72Core Scientific (CORZ): closed at $19.21 (+3.73%), -2.6% at $18.71 CleanSpark (CLSK): closed at $20.04 (+3.94%), -5.09% at $19.02CoinShares Valkyrie Bitcoin Miners ETF (WGMI): closed at $60.86 (+9.97%), -1.61% at $59.88Exodus Movement (EXOD): closed at $28.64 (+0.49%), -0.14% at $28.60Crypto Treasury CompaniesStrategy (MSTR): closed at $315.47 (+3.5%), -3.96% at $302.98Semler Scientific (SMLR): closed at $26.33 (-1.75%), -1.71% at $25.88SharpLink Gaming (SBET): closed at $16.13 (+5.32%), -6.08% at $15.15Upexi (UPXI): closed at $6.48 (+2.05%), -6.64% at $6.05Lite Strategy (LITS): closed at $2.15 (-12.96%), -2.33% at $2.10ETF FlowsSpot BTC ETFsDaily net flow: -$326.4 millionCumulative net flows: $62.4 billionTotal BTC holdings ~ 1.36 millionSpot ETH ETFsDaily net flow: -$428.5 millionCumulative net flows: $14.49 billionTotal ETH holdings ~ 6.84 millionSource: Farside InvestorsWhile You Were SleepingEthereum’s Fusaka Rolls Out on Sepolia; Hoodi Testnet Up Next (CoinDesk): Ethereum's Fusaka upgrade was deployed on Sepolia. The final rehearsal is scheduled for Oct. 28 on Hoodi, following which the date of the mainnet launch will be decided.Societe Generale-FORGE and Bitpanda Expand Partnership to Bring Regulated Stablecoins to DeFi (CoinDesk): Bitpanda will offer Societe Generale-FORGE’s EURCV and USDCV stablecoins to retail users, enabling yield generation and on-chain lending through platforms like Morpho and Uniswap.How China and the U.S. Are Racing to De-Escalate the Trade War (The Wall Street Journal): Both governments are signaling a desire to cool tensions — Washington to calm markets and Beijing to salvage a summit — even as they quietly prepare new measures to pressure each other.How Long Will Gold Mania Last? (Financial Times): Fueled by massive central bank purchases and surging institutional and retail demand, gold’s explosive rally is stoking fears of a speculative bubble after its steepest rise in decades.