BlackRock and VanEck this week published two reports explaining why Wall Street’s support failed to prevent a 50% Bitcoin crash. Both firms point out that the infrastructure that accelerated institutional adoption also amplified the sell-off. Offshore perpetual contracts offered up to 125x leverage, and Washington’s announcement of new tariffs on China on October 10 triggered the forced liquidation of $20 billion in open interest in a single day. Between January 2024 and October 2025, spot Bitcoin ETFs attracted $60 billion before losing more than $5 billion, while AI-themed funds absorbed $46 billion. VanEck observes that 8 of 12 capitulation signals are active and that the correction may be entering its final months, with a shallower trough expected compared to the 78% to 94% wipeouts of previous cycles, as no major lender has collapsed this time.
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