The crypto market has lost over $1 trillion in total value since October 6, 2025. The largest cryptocurrency, Bitcoin, is trading near $103,000, nearly 18% below its recent all-time high, which places it in a technical bear market. The total crypto market cap is close to $3.43 trillion after a sharp 6% daily decline, while daily trading volume has increased to nearly $300 billion.
Analysts attribute the crypto market crash mainly to extreme leverage rather than weakening demand. Open interest in perpetual futures and margin products reached record levels before the downturn. On October 10, exchanges processed around $20 billion in liquidations, wiping out hundreds of thousands of leveraged positions in a single session. Market observers such as The Kobeissi Letter describe leverage as a “wild drug” that magnifies every price move.
This wave of forced selling hit Bitcoin and Ethereum hardest. Bitcoin's dominance has increased to approximately 58.8%, while Ethereum holds around 11.4% of the crypto market. In addition, short-term holders have increased loss-driven selling, and on-chain records reveal rising capitulation from traders, particularly at a time Bitcoin trades below key realized price bands.
In addition to the Bitcoin price drop below $100,000, the market struggles also extend to Spot Bitcoin ETFs, which saw sharp outflows recently. On November 4, 2025, spot Bitcoin ETFs experienced a substantial $566.4 million outflow, bringing the total drain over the past five days to approximately $1.9 billion.
This incident marks the largest single-day outflow since August 1 and significantly influences the market's risk-off sentiment.
At the time of writing, technical analysts are closely monitoring several key Bitcoin price levels. The support levels are between $99,000 and $111,000, near the 75th percentile cost basis. Resistance levels are between $113,000 and $115,000, where many short-term holders may consider exiting. Nevertheless, a sustained move above that band could open the door toward $117,000 and, under favorable macroeconomic conditions, a possible retest of the $126,000 high.
However, risk remains elevated for altcoins. According to reports, the average daily liquidations have reached 300,000 traders, and many smaller tokens indicate double-digit losses.
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Meanwhile, major macroeconomic and political events contribute to the volatility in the crypto market. The current government shutdown in the United States, currently in its 35th day, has halted important economic statistics in the Labor Department.
Regulatory and policy news around digital assets also shapes sentiment. The White House has signaled a friendlier stance toward cryptocurrencies, with officials declaring an end to what they call “Biden’s war on crypto.” Lawmakers such as Senator Cynthia Lummis promote new legislation that they describe as a landmark crypto bill.
At the same time, enforcement and security issues remain a key concern. This includes recent regulatory moves like US authorities sanctioning entities linked to North Korean cyber activity, accused of laundering billions in stolen crypto.