Cryptocurrencies experienced a significant decline in value during the week of October 10-12, 2025, with Bitcoin dropping over 13%. The market downturn was exacerbated by high-profile meetings between Donald Trump and Vladimir Putin, leading to concerns about geopolitical risk and fueling a sell-off among investors. This event has underscored vulnerabilities within the cryptocurrency market, particularly related to excessive leverage and heightened tensions stemming from geopolitical anxieties. The decline in Bitcoin’s price coincided with a 40-70% drop in value across various altcoins during this period of market turmoil. The incident caused widespread panic selling, resulting in $19 billion in liquidations – one of the largest such events recorded. This volatility shook DeFi protocols as TVL declined considerably and liquidity pools saw significant outflows from investors seeking to de-risk their portfolios. Experts attribute the crash to a combination of excessive leverage and geopolitical uncertainties. In response, community discussions emphasized the need for improved risk management practices. Raoul Pal, founder of Real Vision, underscored this point, stating that ‘in times of geopolitical strain, markets behave irrationally driven by fear, and strategy and discipline are key.’ Regulatory bodies have yet to release new policy responses related to these market events. This event has brought attention to the historical link between leverage-driven corrections and cryptocurrency market volatility.