Barely a month after digital assets reached historic highs, the crypto market is once again in retreat.
- Global crypto value drops nearly 20% since early October.
- Bitcoin breaks below $102K, testing long-term support.
- Altcoins lead declines as risk appetite fades.
The sector’s total value, which briefly touched $4.4 trillion in early October, has tumbled by about one-fifth, leaving this year’s overall performance almost flat, according to CoinGecko data.
What began as a routine pullback after months of exuberance quickly morphed into a broad selloff. Roughly $19 billion in leveraged positions were liquidated in a matter of days, shaking confidence across exchanges and wiping out much of the momentum that had carried Bitcoin and other tokens to record levels.
From Trump’s Crypto Push to Market Fatigue
The slump comes only weeks after optimism surrounding President Donald Trump’s pro-crypto policies had lifted sentiment to fever pitch. His pledge to make the United States the world’s blockchain capital triggered a 35% surge in Bitcoin, drawing new retail participation and inflows from institutional desks.
But enthusiasm proved fleeting. The combined market value of digital assets has now dropped below the level seen when Trump took office, showing just how swiftly risk appetite has reversed. Traders say the market now feels eerily similar to late-cycle conditions in 2021—buoyant on headlines, but fragile beneath the surface.
Bitcoin Slides Through Support
Bitcoin has been at the center of the decline. Down roughly 8% this week, the coin fell beneath its 200-day moving average, a technical line that has served as long-term support since the last bear market in 2022. As of Friday morning in London, prices hovered near $101,000, with little sign of recovery momentum.
Technical analysts warn that losing this level could trigger further selling pressure. “Once you break that trend, algorithms tend to exaggerate the move,” one trader said, noting that large funds have already reduced exposure ahead of next week’s macro data releases.
Altcoins and DeFi Tokens Face a Bleak Season
Smaller cryptocurrencies have suffered even deeper losses. Augustine Fan of SignalPlus noted that capital has been retreating from altcoins for months. “Outside of Bitcoin and Ethereum, there’s been virtually no new money entering DeFi or smaller-cap tokens,” he said, describing a market “running on fumes.”
This concentration of liquidity has left many projects vulnerable to steep drawdowns. Several DeFi protocols have seen double-digit losses in token value, while trading volumes on decentralized exchanges remain far below spring levels.
Fear Spills Over from Tech Stocks
The selloff has also coincided with growing anxiety in traditional markets. Jeff Mei, COO at BTSE, pointed out that the crypto correction mirrors unease surrounding overheated AI and technology stocks. “If the bubble in AI equities bursts, Bitcoin will likely dip below $100,000, and altcoins could face even harsher declines,” he warned.
That connection between crypto and high-growth tech plays has grown stronger in recent months, as both have become proxies for speculative risk sentiment among institutional investors.
Early Signs of Relief
Despite the turbulence, there are glimmers of stabilization. After six days of withdrawals, U.S. spot Bitcoin and Ethereum ETFs attracted $253 million in inflows on Thursday, suggesting some investors are treating the dip as a buying opportunity.
Still, analysts say it will take sustained inflows and improved macro visibility before confidence returns. With volatility elevated and global liquidity tightening, the market’s October euphoria has quickly given way to a cautious, defensive stance.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Source: https://coindoo.com/bitcoins-crypto-boom-stalls-as-market-loses-900b-since-october/