Why is crypto down today? The crypto market just faced its strongest sell-off wave of October, taking overleveraged bulls by surprise. Peace in the Middle East, anon. All safe-haven assets will collapse by 80%, and speculative leveraged investments will increase 100-fold.
Or are they?
So far, more than $630 million in positions have been wiped out as of Oct. 9, according to Coinglass data, more than 81% of which were long bets. fell around 2%, while BNB and XRP each fell around 4%.
Can you please keep the crash to yourself and not take the other market with you? Here’s what happens with Bitcoin And Alternate season:
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In Altseason 2025, BNB and XRP gained slight dominance and continued to exploit the rest of the altcoin market.
It’s sinister. After coming close to a record $4.27 billion in total crypto market capitalization earlier this week, nearly $200 billion has evaporated, returning valuations to mid-September levels. Bitcoin is still holding above $120,000, up about 8% for the month, while Ethereum is hovering just below $4,500 as traders take some chips off the table.
Liquidation is not a mystery but rather a macro problem. A cocktail of Fed uncertainty, dwindling liquidity, and simple profit-taking all hitting at once has drained liquidity from the market (all except that of Zcash, BNB, and a few others).
The selloff coincided with renewed concerns from the Federal Reserve about inflation.
“The FOMC should be cautious about adjusting policy so we can gather more data,” Barr said, signaling that the Fed is not ready to claim victory on inflation.
Bond markets reflected this caution. Yields on 10-year Treasury notes held near 4.13%, while 30-year bonds hovered around 4.72%, both showing minimal movement from last week’s auctions.
Mid-cap projects such as Aptos (APT) and Sui (SUI) declined 3-6% as leveraged traders exited their positions. Still, data from DeFi Llama shows that the total value locked (TVL) in DeFi protocols remains near $166 billion, suggesting that long-term trust has not broken.
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Analysts at 99Bitcoins note that the market structure remains generally bullish despite the pullback. The correction was likely a surge in leverage, not the start of a new downtrend.
In the middle of the Red Sea, one of the strongest technical configurations of all the major assets appears. The token appears to form a classic “cup and handle” pattern on its monthly chart.
