Crypto Bloodbath: What’s Really Driving Today’s Market Plunge - October 28, 2025

Digital assets tumble as regulatory fears collide with macroeconomic pressures.

The Perfect Storm Hits Crypto

Multiple catalysts converge to hammer cryptocurrency valuations across the board. Regulatory uncertainty from Washington meets hawkish central bank signals, creating a risk-off environment that punishes speculative assets.

Technical Breakdown Accelerates Selling

Key support levels shatter as leveraged positions get liquidated en masse. The domino effect triggers cascading sell orders while traditional finance institutions pull back exposure.

DeFi Contagion Fears Resurface

Protocol vulnerabilities surface just as liquidity thins, reminding everyone that in crypto, your 'safe' yield farm can turn into a ghost town faster than you can say 'rug pull.'

Market structure fractures under pressure - proving once again that when Wall Street sneezes, crypto catches pneumonia.

Crypto Winners & Losers

At the time of writing, 9 of the top 10 coins per market capitalization have seen their prices decrease over the past 24 hours.

decreased by 1.2% since this time yesterday, currently trading at $114,289.

is down by 2.1%, now changing hands at $4,120.

The highest drop in the category is 2.7% by, now trading at $0.2006.

It’s followed by2.2% to $1,131.

recorded the only rise in the category. It’s up by 0.4%, trading at $2.64.

Looking at the top 100 coins, a dozen are up and the rest are in the red. Among the red coins, one recorded a double-digit fall.fell 21.1% to the price of $0.2287.

It’s followed by6.6%fall to $325.

On the other hand, two coins saw double-digit rises.appreciated 38.8%, now changing hands at $1.36.

The other is, which is up 16.3% to $0.2114.

Meanwhile, crypto lenderin Bitcoin-backed loans this year. This is a sharp rise in crypto credit demand as investors choose to borrow instead of selling during the bull market.

Moreover,andannounced plans to develop digital asset payment capabilities for institutional clients. This could bring Wall Street closer to the digital asset ecosystem.

The collaboration aims to make it easier to MOVE between fiat and crypto, and then to expand into payments orchestration for always-on settlement.

We’re collaborating with @Citi to build the future of payments.

→Exploring making it easier for Citi clients to use digital assets
→Unlocking the power of stablecoins for payments
→Improving on and off-ramps

Time to make digital assets an integral part of the global economy. pic.twitter.com/jGaTZ8wPRf

‘BTC Is Stabilizing as Sell Pressure Eases and Profitability Improves’

According to, markets remain cautious, while several indicators point to “stabilization beneath the surface.”

Notably, selling pressure has eased, leverage has reset, and profitability is improving, they write. That said, participation and on-chain activity remain muted.

“Until conviction deepens and demand broadens, Bitcoin is likely to remain in a rangebound consolidation, with cautious Optimism beginning to replace defensive positioning,” Glassnode concludes.

#Bitcoin is stabilizing as sell pressure eases and profitability improves, but muted activity and selective participation suggest a cautious, rangebound market until major demand steps in.

Read more in this week’s Market Pulsehttps://t.co/foWFlhVhh5 pic.twitter.com/RGvwvtNsvm

Meanwhile, Fabian Dori, Head of Investments at, argues that the US government shutdown is depriving investors of key economic data that helps them make informed decisions about inflation trends and market positioning.

“Adding to the uncertainty are the shock waves from the recent crypto flash crash, which exposed still-existing fragile points in the market structure and leverage in altcoins that were difficult for stressed liquidity to absorb,” Dori says.

He argues that “this confirms, once again, the need for a comprehensive market structure bill, which is also impacted by the political stalemate.”

Therefore, various market indicators – including a brief drop of the fear & greed index into the ‘fear’ territory, the spike in Deribit’s BTC volatility index, and average borrowing and lending APYs cooling from peaks – indicate that “many investors are still digesting the recent happenings and are trying to look through the settling dust.”

“Given constructive business-cycle signals, resilient corporate earnings, accommodative liquidity, and ongoing institutional adoption of crypto, CPI readings that modestly undershot expectations and validated the Fed’s projection of a mid-term easing in inflation pressures could help reignite investor risk appetite,” Dori concludes.

Levels & Events to Watch Next

At the time of writing on Tuesday morning, BTC trades at $114,289. For the first part of the day, the coin traded sideways until it reached the intraday high of $115,755, before it plunged to the day’s low of $113,599 NEAR the time of writing.

A breakout above $117,600 could lead to a move toward $120,500 and, subsequently, $124,100. However, a failure to hold this level may lead to a retest of the $112,250 zone.

Ethereum is currently changing hands at $4,120. Its price initially jumped to the day’s high of $4,231. It then dropped to the intraday low of $4,072, before recovering slightly to the current level.

If ETH moves above $4,250, it may retake the $4,400 and $4,530 levels. If the bullish trend continues, the price may proceed towards $5,000. But a fall below $4,050 could lead to a decrease below the $4,000 mark and toward $3,900.

Meanwhile, the crypto market sentiment stands unchanged over the past day, staying within the neutral zone. The crypto fear and greed index remains at 42 today.

The sentiment level suggests continuous caution among market participants, as they await additional geopolitical and economic signals that WOULD point to the direction the market may take in the near to mid-term.

ETFs Go Green

The US BTC spot exchange-traded funds (ETFs) recorded $149.3 million in inflows on Monday, for a third consecutive day. The total net inflow now stands at $62.13 billion.

Of the 12 ETFs, three recorded inflows, and there were no outflows.took in $76.4 million, followed by$65.27 million and$7.63 million.

Moreover, the US ETH ETFs broke the outflow streak on 27 October, with $133.91 million in inflows. The total net inflow now stands at $14.49 billion.

Six of the nine finds saw positive flows, and none saw outflows.leads the list with $72.49 million, followed by$22.59 million.

Meanwhile, S&P Global Ratings gave Michael Saylor’sa ‘B-‘ credit rating, a level considered junk or speculative grade. It is the first Bitcoin treasury company to receive a formal credit grade from a major agency.

The firm got the rating due to its heavy bitcoin exposure, limited business diversification, and weak dollar liquidity. S&P said the outlook for the company remains stable.

S&P Global Ratings has assigned Strategy Inc a 'B-' Issuer Credit Rating (Outlook Stable) — the first-ever rating of a Bitcoin Treasury Company by a major credit rating agency. https://t.co/WLMkFqkkCb

Quick FAQ

The crypto market has decreased over the past day, and the stock market surged and set new intraday and closing ATHs during work hours on Monday. By the closing time on 27 October, thewas up by 1.23%, theincreased by 1.83%, and therose by 0.71%. Major stock indexes set records for a second consecutive session on renewed optimism that the US and China could see a trade deal.

Analysts expect additional, intermittent drops in the market’s search for a stable base that would enable the next leg up. Nonetheless, we’re likely to see more brief lasting in the near term as well.