For the first time since 2018, the Bitcoin price has closed the October trade in the red. With this, the market sentiments are slowly turning more fearful every day. The volume has doubled in the past 24 hours, reaching over $212 billion, and nearly $250 billion has been wiped out of the market cap. Moreover, the crypto markets saw a rapid $90 billion evaporation in the past hour, which has stunned the traders worldwide.
The BTC price has plunged below $105,000, and if it breaks the final defense at $102,000, from where it previously rebounded, analysts believe it could retrace deeper below $100,000.
Why the Crypto Market is Down Today—Top Reasons!
The crypto market extended its slide today as investors reacted to renewed Federal Reserve hawkishness and several factors. Bitcoin and Ethereum were the most hit, as no fresh ETF inflows were recorded, while outflows also remain negative. But why is the selling pressure mounting over the markets?
Fed’s Hawkish Outlook Sparks Risk Aversion
The latest downturn began after the Federal Reserve signaled a slower path toward interest-rate cuts, warning that inflation remains sticky and policy easing may be delayed until early 2026. The remarks pushed global investors away from risk assets, with both equities and cryptocurrencies facing steep intraday losses.
Over $400 Million in Liquidations Deepen the Slide
Data from liquidation trackers shows over $400 million in leveraged positions were wiped out within hours, the majority from long bets on Bitcoin and Solana. This wave of forced selling accelerated the downturn, creating a cascade effect across derivatives markets. Analysts note that the sell-off mirrors prior flash liquidations seen during heightened volatility, where funding rates and open interest reached overextended levels.
Broader Market Weakness and Profit-Taking
Beyond macro pressures, the pullback is also linked to profit-taking after last week’s recovery rally. Traders who had accumulated positions near recent lows opted to secure short-term gains as uncertainty rose. Meanwhile, sentiment indices such as the Crypto Fear & Greed Index have shifted toward “Fear,” suggesting waning investor confidence.
Altcoins Hit Hardest
Altcoins bore the brunt of today’s market downturn, posting deeper losses than Bitcoin as liquidity thinned across major exchanges. Solana (SOL) plunged below $176, shedding nearly 7% in a matter of hours, while Avalanche (AVAX) and Polygon (MATIC) tumbled between 8% and 10%. Cardano (ADA) and XRP also slid sharply, weighed down by broad-based selling and fading investor appetite for high-beta assets.
Traders report that most of the pressure stemmed from long liquidations and margin unwinds, particularly in decentralized exchanges where thin liquidity magnified volatility. The pullback also followed weeks of strong inflows into top-performing altcoins, making them more vulnerable to sudden reversals. As risk sentiment erodes, analysts warn that altcoins could see a further 5–8% downside if Bitcoin fails to hold above key support near $102,000, with recovery prospects hinging on broader market stability.
Conclusion: Is This the Start of a Bear Market?
While the latest sell-off has reignited fears of a prolonged downtrend, analysts caution against calling it a full-fledged bear market just yet. The correction appears largely macro-driven, intensified by over-leveraged positions and low weekend liquidity, rather than a breakdown in on-chain fundamentals.
Bitcoin’s ability to hold above the $100,000 psychological support will be key in determining near-term sentiment. A sustained drop below this level could invite further panic selling, potentially dragging altcoins into deeper correction zones. Conversely, if BTC stabilizes and reclaims $108,000 to $110,000, markets could regain footing and attract fresh inflows from sidelined capital.
In essence, the market remains volatile, not defeated—a temporary storm in an otherwise bullish long-term cycle. Traders, however, should brace for heightened volatility and cautious accumulation in the days ahead.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
