Altcoins Implode in Oct 10 Crypto Bloodbath While Bitcoin Shows Resilience - Wiston Capital Report
Crypto markets just witnessed another classic altcoin massacre.
The Great Divide
While Bitcoin demonstrated its characteristic stability during the October 10th flash crash, alternative cryptocurrencies got absolutely demolished. Wiston Capital's latest analysis reveals a brutal sector rotation that left altcoin portfolios bleeding out.
Flight to Quality
Investors aren't just panicking—they're voting with their wallets. The data shows capital fleeing speculative altcoins and seeking shelter in Bitcoin's proven track record. Another reminder that when the tide goes out, you discover who's been swimming without fundamentals.
The smart money knows this dance by now: altcoins promise the moon during bull runs but deliver crater-sized returns when reality bites. Some things never change in crypto—including the predictable pattern of traders chasing yesterday's winners straight off a cliff.
What Erith is watching next
Erith said he is tracking bitcoin’s 365-day exponential moving average as a line that separates bullish from corrective regimes. He added that a pullback toward the $100,000 area and a touch of that average WOULD not, by itself, overturn his longer-term view provided the level holds — but a sustained break would raise the risk of a deeper reset.
He also pointed to market breadth via bitcoin’s share of total crypto value. According to Erith, the sell-off accelerated a rotation toward higher-liquidity assets, lifting bitcoin dominance. He said a continued rise in that share alongside weak breadth would argue for caution in high-beta tokens until non-bitcoin charts rebuild.
Beyond bitcoin’s own levels, Erith highlighted Strategy’s equity as a proxy for leverage and sentiment in the ecosystem. He noted that roughly four years ago a decisive MOVE below its 365-day average preceded a major bitcoin drawdown. In his view, holding above that trend line would support the resilience narrative; a break below could foreshadow renewed selling pressure.
Volatility is the other gauge. Erith said the VIX — the equity “fear index” — has started to climb and that historically better entries arrive when volatility spikes rather than during the early rise. That framing implies patience on adding risk while equity-volatility stress plays out.
On positioning, Erith said he remains invested but is avoiding leverage and is carrying cash “waiting for the dust to settle.” He said moves of this sort have, in his experience, sometimes preceded broader downturns, which is why he prefers to see the above signals stabilize before increasing exposure.
Erith said the sell-off inflicted heavy damage on altcoins, while bitcoin’s month-to-date decline is modest and comparable to large-cap tech, which he views as evidence of growing resilience.
