- The global cryptocurrency market capitalization dropped 5.9% to $3.64 trillion, reaching its lowest point since July 2025.
- Concerns about the stability of U.S. regional banks sparked a major sell-off in both stock and crypto markets.
- Total liquidations in the crypto market reached $1.09 billion, mainly affecting Bitcoin and Ethereum traders.
- Altcoins saw significant losses, with BNB falling the most at 12.3% in the last 24 hours.
- Market sentiment favors a possible Bitcoin recovery, but traders are generally bearish in the short term.
The cryptocurrency market experienced a sharp decline on Friday morning as its total market capitalization fell 5.9% to $3.64 trillion. This marks the lowest level for the market since July 2025. The drop came as investors reacted to rising fears about the stability of U.S. regional banks, triggering widespread selling across digital assets.
According to data from CoinGecko, Bitcoin led the downturn, sliding 5.6% within 24 hours and hitting an intraday low of $104,853. The decline affected most major cryptocurrencies, with total liquidations across the market amounting to $1.09 billion. BNB suffered the largest decline among major altcoins, falling 12.3%, while other assets like Ethereum, XRP, Solana, Tron, Dogecoin, and Cardano recorded losses ranging from 4% to 9%.
Derek Lim, head of research at market-making firm Caladan, linked the panic to traditional finance issues. He stated, “As concerns spread through the financial sector, risk appetite weakened pretty severely across all markets. Naturally, crypto dropped as traders initiated a flight to safety.” Reports of problems at U.S. lenders including Zions Bancorporation and Western Alliance led to selloffs in their stocks, which quickly affected other high-risk assets such as cryptocurrencies.
Altcoins, which were still recovering from a previous week’s market flash crash, took the brunt of the latest losses. According to CoinGlass, Bitcoin and Ethereum traders accounted for over 55% of the total market liquidations.
Despite ongoing caution in traditional finance, Lim maintained, in his words, a “bullish market structure” for the broader crypto markets. On the prediction platform Myriad, users estimated a 66% probability that Bitcoin would end October with more favorable trading days compared to Ethereum. However, in the near term, a separate market showed a 68% chance of Bitcoin falling to $100,000 before reaching $120,000, reflecting prevailing short-term bearish sentiment.
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