_**Opinion by: Daniel Ahmed, co-founder of Fasset and founding member of the 
Own Foundation**_
Crypto was born from a vision to decentralize power, democratize finance and 
build systems where equity prevails over exploitation. Somewhere along the 
way, however, the movement lost its moral compass. As speculation surged, 
purpose dwindled.
We must return crypto to its decentralized roots, a technological revolution 
built on long-term value, inclusivity and ethics rather than cyclical, 
speculative gains. The industry should take inspiration from emerging regions 
and how ethical financial investing can help to repair some of the ways our 
industry has often fallen short.
## The rise of layer 2
When Vitalik wrote a blog post on layer 2s as a cultural extension of 
Ethereum, he brought up a critical point not only in business and technology 
but humanity &#8212; what we build in this life should be more significant than 
ourselves. Citing blockchains, he described how layer 2s, which he framed as 
subcultures of Ethereum, don&#8217;t merely differ in their technical benefits but 
how their positioning and intricacies trickle down into the culture of their 
communities.
In a space where new layer 2s are emerging rapidly, Vitalik&#8217;s insights are 
accurate and inspiring. When we build in a vacuum of echo chambers and 
monocultures, we miss out on the actual value of community in Web3.
What really brings communities together? Too often in crypto, that answer has 
been making people rich. What it should be is shared ideals that solve real 
issues. If done with purpose and conviction, this can still make people money.
While the rapid rise of layer 2 and layer 3 solutions promises scalability and 
efficiency, they are too often motivated by speculative gains rather than 
lasting value creation. If there&#8217;s any doubt, the numbers speak for 
themselves.
Layer-2 fatigue aside, the sheer scope of this data raises the question: Is 
our industry innovating just because it can, or is it creating a real-world 
utility that improves the lives of fellow humans? There&#8217;s nothing wrong with 
building something to make money, but if that&#8217;s the only reason we&#8217;re building 
something, that&#8217;s a problem.
_**Recent:**__**Islamic finance and Web3 take stage at Istanbul Blockchain 
Week**_
We need to shift the narrative and look at how Web3 is solving actual, 
fundamental issues in emerging markets &#8212; particularly in regions like the 
Middle East, Southeast Asia and Africa &#8212; as a north star for how to ethically 
build the future of our space.
## What does innovation indeed mean?
If crypto projects think innovation in Web3 is only about VC-led fundraising 
rounds, comparing transactions per second, or building the next great 
decentralized application to trade cat coins, they have probably never existed 
in a place where even the simplest of financial transactions is cumbersome.
In emerging markets, where people grapple with inflation, high remittance fees 
and limited access to financial services, we&#8217;ve witnessed how meaningful 
effects can transform the daily lives of millions. These are not abstract 
issues. They affect business owners, families, students, creators and more.
From stablecoins to secure and user-friendly payment applications, Web3 offers 
a unique opportunity to address these problems by creating decentralized 
financial systems that bypass the inefficiencies and inequities of traditional 
banking. For Web3 to truly make a difference in these regions, it must be 
designed with a focus on ethics, accessibility and long-term utility. We must 
lead by example.
In these markets, if innovation doesn&#8217;t create a meaningful disruption that 
improves people&#8217;s lives and addresses real-world problems, it&#8217;s nothing more 
than a buzzword. The most powerful solutions in technology are those that 
solve the world&#8217;s greatest problems.
## Ethical finance &#8212; Web3&#8217;s future?
If you want inspiration, pay attention to those doing something different. If 
you want to inspire others, lead by example.
Ethical finance, particularly Islamic finance, offers valuable lessons for 
Web3. Dating back to the 1960s and 70s in the Middle East and North Africa 
(and even further to around 620 AD), this sector is built on risk-sharing, 
ethical investment and a focus on tangible assets.
Islamic finance has endured for centuries because it rejects speculation in 
favor of real, meaningful value. For example, we&#8217;ve seen the rise of ethical 
finance institutions like Al Rajhi Bank, one of the most prominent Islamic 
banks globally, known for its investments in tangible assets and community- 
oriented financial products.
This model, which strives to build based on morals, substance and necessity 
versus mere financial opportunity, can guide Web3 as it moves beyond hype- 
driven growth.
## Build by example
As we look toward the next few years with the wind and a bull market beneath 
our wings, the time has come for Web3 to take a hard look in the mirror and 
redefine what success and innovation genuinely look like. The answer to this 
won&#8217;t be the same for everyone &#8212; that would be pretty boring if it were.
We must find a common ground of shared values that extends beyond technical 
achievements, market capitalization, total value locked or X followers but 
strives to innovate something more significant than any layer 2 or token.
When gearing up to launch something new, our industry must ask itself 
something that lives at the heart of Islamic finance: How will this product 
improve people&#8217;s lives? Is it true to the ethos of creating decentralized 
systems that are transparent, fair and built for the benefit of all?
If we can&#8217;t answer that, perhaps we should step back and ask why. Then, get 
back to work.
_**Opinion by: Daniel Ahmed, co-founder of Fasset and founding member of the 
Own Foundation.**_
This article is for general information purposes and is not intended to be and 
should not be taken as legal or investment advice. The views, thoughts, and 
opinions expressed here are the author&#8217;s alone and do not necessarily reflect 
or represent the views and opinions of Cointelegraph.

Ethical finance must guide crypto’s evolution

Decentralized AI startup Nous Research secured major investment for a LLM 
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Decentralized AI is coming to Solana, as Paradigm invests $50 million in Nous

## What is a Bitcoin flash crash?
_A Bitcoin flash crash is a sudden, sharp plunge in the market price of BTC 
that only lasts a short period of time before prices start to normalize. _
The appearance of unique market conditions causes a jolt in the leading 
cryptocurrency&#8217;s market price. Typically, the reason behind a flash crash is a 
large group of sellers (called whales) deciding to sell Bitcoin (BTC) suddenly 
and flood the market with supply. This overwhelms buyers and can erase 
billions from the market in minutes.
The fact that BTC flash crashes have still occurred in recent years highlights 
the continued crypto volatility risks, even with a robust crypto asset like 
BTC. Despite crypto&#8217;s multitrillion-dollar market status, it is still 
maturing.
Particularly for newer investors in the space, it is critical to understand 
BTC price crashes and why they happen. Without this knowledge, watching an 
event like this unfold can be devastating and lead to badly judged emotional 
trading decisions rather than insightful, profitable investing.
_**Did you know?** Traditional stock markets have built-in circuit breakers 
where trading is temporarily halted when an asset or index moves a certain 
amount. BTC markets do not have these circuit breakers, so it&#8217;s hard to 
control rapid market declines._
## How does a Bitcoin flash crash occur?
_The speed and severity of a flash crash can often be hard to understand. For 
the average investor, it sparks terror and perhaps confirms their deepest 
fears of their crypto stash becoming worthless. But with a calm head, the 
&#8220;tripwire&#8221; for a BTC crash is usually tied to a certain combination of 
interconnected factors. _
Let&#8217;s take a look at how flash crashes happen:
 * Liquidation of leveraged positions when markets move unexpectedly. If leveraged traders can&#8217;t maintain their collateral during a big market drop, exchanges automatically sell their position to pay off the loan. When this happens on a large scale, it sends a wave of selling pressure through the market, crashing prices along the way. 
 * Algorithmic trading errors can cause a cascade of sell orders. Many traders use computer programs with preset rules. When these systems react to unusual market conditions, the trading bots can start selling aggressively. This then has a knock-on effect, sending sell signals and causing a chain reaction of automatic selling. 
 * Low market liquidity makes prices more sensitive to large trades. Think of this as far more active sellers than buyers. For BTC, it&#8217;s more prevalent on smaller exchanges where someone wants to sell a large amount quickly. They exhaust the available buy order immediately and cause a sudden BTC drop. 
 * Technical glitches in exchange infrastructure can cause trading to break down. It could be from servers going offline, data feeds freezing or order matching failing. This can lead to incorrect pricing displays and orders executing at extreme prices. 
 * Panic selling regularly occurs during scary news events. As the old trader&#8217;s saying goes, &#8220;Buy the rumor, sell the news.&#8221; When bad news breaks, markets could panic and everyone sells simultaneously, overwhelming buyers and sending prices plummeting.
_**Did you know?** In December 2024, BTC finally breached the elusive $100,000 
mark but then tumbled back down to $94,000 within hours. In the process, over 
200,000 traders were liquidated, causing losses of over $1 billion._
## Benefits of a Bitcoin flash crash
_The unfurling of a crypto market crash sends an icy stab through most 
investors &#8216; bodies; of course, they are highly unfavorable market conditions 
in most scenarios. But once you&#8217;ve gotten over the initial shock, there can be 
some hidden benefits to explore._
 * Exceptional buying conditions: While destructive for panicked investors, for those who are prepared, it offers a golden buying opportunity to buy BTC at a substantially discounted price. 
 * Market stress test: Assuming there is a quick recovery, these types of events serve as a stress test to get valuable insight into how markets react under extreme circumstances. 
 * Improved industry practices: It provides a learning opportunity for platforms like crypto exchanges to understand what went wrong and improve their infrastructure to avoid incidents in the future. 
 * Increased investor protection: Flash crashes attract the attention of mainstream media and regulators. This focus can be a catalyst for better regulation and protection for retail investors.
_**Did you know?** Despite its reputation for crashes and volatility, BTC now 
shows signs of becoming a mature asset. It can be less volatile than many 
well-known securities, such as the &#8220;Magnificent 7,&#8221; which includes Nvidia, 
Meta, Tesla and others. _
## Examples of Bitcoin flash crashes
_There have been several BTC flash crashes since the cryptocurrency was 
launched in 2009. Some of the biggest exchanges have seen prices evaporate in 
minutes, and market-wide crashes have left investors grappling with wiped-out 
portfolios. _
On June 19, 2011, the infamous Mt. Gox exchange was exposed to a database hack 
and compromised accounts. BTC&#8217;s price was pulverized from $17 down to $0.01, 
almost valueless. It was an early setback for Mt. Gox and BTC&#8217;s reputation, 
but it exposed early exchange vulnerability and showed the need for more 
robust infrastructure.
More recently, on March 18, 2024, BTC flash crashed on BitMEX. While other 
exchanges were trading at over $60,000, the price on BitMEX crumbled down to 
$8,900. It all happened in just two minutes, but the recovery was swift, with 
prices rebounding to normal levels within 10 minutes.
In addition, BTC-EUR prices on Coinbase briefly crashed from €63K to €48K, 
sharply diverging from other markets, as reported by Kaiko Research.
CryptoQuant&#8217;s head of research, Julio Moreno, commented on the flash crash 
that saw Bitcoin briefly drop to around $88,800 on December 5, 2024. According 
to him, the flash crash was driven by a sell-off cascade and deleveraging in 
the BTC futures market, with open interest dropping as leveraged long 
positions were liquidated.
COVID-19 was also responsible for a market-wide crash in March 2020 when the 
world&#8217;s most widely held crypto slid 50% in two days. The price collapsed from 
over $9,000 to below $4,000. It then took two months for market prices to 
return to previous levels.
## How to protect against a Bitcoin flash crash in the future
_Flash crashes are almost impossible to accurately predict. When they strike, 
things happen quickly. Usually, the damage is done before a human can react, 
particularly when positions are liquidated and trading bots react to sell 
signals. But it is still possible to prepare and protect yourself against the 
fallout. _
 * Set up price alerts at key technical levels: This will help to alert you to unnatural market conditions so you are not caught off guard. 
 * Use leverage lightly; flash crashes burn highly leveraged traders instantly. So, don&#8217;t overexpose yourself to highly leveraged market positions. 
 * Learn to use a stop loss to protect capital. This enables you to sell your position early on in a crash, although they&#8217;re not foolproof, as a flash crash can fly past a stop loss in the worst cases. 
 * Keep spare capital in reserve to give you the ability to capitalize on low market prices when they arrive. 
 * Don&#8217;t keep the bulk of your holdings in an exchange account. Crashes can put platforms under severe financial stress, so try to self-custody your assets.
As learned, flash crashes happen fast and can wipe out positions in seconds, 
especially for leveraged traders. Keeping a diversified portfolio, setting 
stop-loss orders and only investing what you can afford to lose are simple but 
effective ways to reduce risk during sudden market drops.

What is a flash crash in Bitcoin, and why does it matter?

The Ethereum price has been under pressure this year, having dropped by 56% 
from its November high. Ethereum&#8217;s (ETH) performance has been worse compared 
to other top cryptocurrencies like Bitcoin (BTC) and Solana (SOL). In fact, 
Ethereum has dropped to…

Is Ethereum dead? Chart shows the key ETH price to watch

**Key points:**
 * Bitcoin is witnessing a tussle between buy and sell volume as BTC/USD hits its highest levels since the start of March.
 * BTC price action is making traders increasingly wary due to the pace of recent gains.
 * $100,000 is likely to remain out of reach for the short term, multiple commentators say.
Bitcoin (BTC) headed into key resistance after the April 25 Wall Street open 
as doubts over the BTC price breakout persisted.
_BTC/USD 1-hour chart. Source: Cointelegraph/TradingView_
## Bitcoin sellers and buyers battle for control
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting new 
seven-week highs above $95,000.
Having preserved its yearly open at $93,500 as intraday support, Bitcoin went 
on to liquidate leveraged shorts as $100,000 came closer.
The latest data from monitoring resource CoinGlass shows progress in taking 
upside liquidity across exchange order books.
_BTC liquidation heatmap. Source: CoinGlass_
Reacting, popular trader Daan Crypto Trades underscored the importance of the 
current price range in the context of the Bitcoin bull market.
&#8220;Trading back above the Bull Market Support band as we speak,&#8221; he wrote in an 
X post, referring to a cluster of moving averages lost as support earlier in 
2025.
&gt; &#8220;A weekly close above this level would be a good look for the larger 
&gt; timeframe and I&#8217;d expect new highs at some point as long as it holds above.&#8221;
_BTC/USDT 1-week chart. Source: Daan Crypto Trades/X_
Others were cautious, with fellow trader Skew revealing a tug-of-war between a 
large-volume buyer and seller.
&#8220;Price would be a lot lower than it is now without the passive buyer matching 
this market selling,&#8221; he warned alongside an order book print.
&gt; &#8220;Eventually one will throw in the towel &amp; volatility will follow through.&#8221;
_BTC/USDT 1-minute chart with liquidity data. Source: Skew/X_
## Waiting on a $100,000 BTC price &#8220;catalyst&#8221;
Continuing, Keith Alan, cofounder of trading resource Material Indicators, 
likewise doubted whether BTC/USD could sustain a trip above $95,000.
_**Related:**__**Bitcoin exchange outflows mimic 2023 as whales buy retail 
&#8216;panic&#8217;**_
Alan noted declining volume as price moved higher, repeated wicks below the 
yearly open and a &#8220;down&#8221; signal on one of Material Indicators&#8217; proprietary 
trading tools.
&#8220;For me, a pump above $95k would invalidate the new signal, but I&#8217;d probably 
consider such a move to be a short squeeze unless we have a catalyst with some 
substance behind it,&#8221; he summarized.
_BTC/USD 1-day chart. Source: Material Indicators/X_
Macroeconomic perspectives also favored a period of consolidation before 
BTC/USD returned to six figures.
In its latest bulletin to Telegram channel subscribers, trading firm QCP 
Capital argued that Bitcoin lacked a $100,000 &#8220;catalyst.&#8221;
&#8220;Given the pace of the recent rally, we remain tactically cautious,&#8221; it wrote.
&gt; &#8220;Positioning has become more crowded, which could lead to sharper reactions 
&gt; around key levels. Market participants appear to be watching closely for 
&gt; signs of continuation or exhaustion.&#8221;
This article does not contain investment advice or recommendations. Every 
investment and trading move involves risk, and readers should conduct their 
own research when making a decision.

Cryptocurrency price in USD