Crypto Market Drops 20% in October, Wiping Out 2025 Gains

The cryptocurrency market experienced its first red October since 2018, with a significant downturn erasing most gains from the year's record-breaking start. The total crypto market cap peaked at $4.4 trillion on October 6 but has since dropped 20%, leaving it only 2.5% up year-to-date.

A sudden liquidation of $19 billion in leveraged positions initiated the downturn.
Bitcoin fell 8% this week, dropping below its 200-day moving average for the first time since 2022.

Binance Research Insights

Bitcoin dominance increased to 59.4% in October, while institutional interest in Ethereum remained strong.
Total market cap decreased by 6.1%, yet leverage rose over 10% to 5.77% by month-end.
Privacy coins and AI-linked blockchain projects gained momentum; Zcash network activity surged by 160%.

Whale Movements and ETF Activity

Top 10 Bitcoin exchange depositors have been inactive, hinting at potential future volatility.
Stable "Exchange Whale Ratio" suggests large holders await clearer market signals.
After consistent ETF outflows, Bitcoin and Ether ETFs saw $253 million in inflows on November 6, indicating stabilization signs.

Market Revival Conditions

Analyst Axel Adler Jr. stated that a risk-on revival requires stable UST yields, reduced volatility (VIX index), and diminished gold momentum.
Bitcoin must maintain support around $100,000 and continue ETF inflows for a bullish trend.
Reestablishing correlation with broader risk assets is crucial for sustained rallies.