Cryptocurrency market turmoil
October 2025 has lived as much as its ‘RockTober’ repute, delivering a rollercoaster of heightened volatility that has examined investors throughout a number of asset classes.
For the cryptocurrency sector, the month started with euphoric highs earlier than spiralling right into a dramatic flash crash that worn out billions in market value. The turbulence has not been restricted to digital currencies; it has additionally affected the US (US), regional banks, and treasured metals markets.
Huge market wipeout and the protected haven paradox
Cryptocurrency’s troubles started on 10 – 11 October, when a sudden flash crash erased greater than $370 billion of market capitalisation in hours. Triggered by US President Donald Trump’s shock announcement of escalated tariffs on Chinese language imports, the occasion ignited a cascade of liquidations throughout leveraged positions, marking the biggest 24-hour wipeout in cryptocurrency historical past.
Bitcoin (BTC) plunged from a pre-crash excessive close to $122,500 to an intraday low beneath $110,000, a drop of over 10%, whereas Ethereum (ETH) fared worse, sliding roughly 20% from $4400 to an intraday low close to $3500.
The irony is that cryptocurrencies and treasured metals are sometimes touted as protected havens in opposition to fiat depreciation and geopolitical shocks. Each asset courses rallied spectacularly in previous months, drawing waves of worry of lacking out (FOMO) shopping for and overextended leveraged positions, setting the scene for this month’s pullback.
Market sentiment and future outlook
Sentiment stays cautious, with considerations mounting relating to what could be the following overextended domino to fall. Bitcoin is down 4.86% month-to-date, surrendering almost all of September’s 5.86% advance, whereas Ethereum has slid 6.51% this month after a 5.64% decline within the prior month.
