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BTCC / BTCC Square / Global Cryptocurrency /
Liquidity Crunch Triggers October 2025 Crypto Market Collapse

Liquidity Crunch Triggers October 2025 Crypto Market Collapse

Author:
Global Cryptocurrency
Published:
2026-02-20 15:52:02
20
3
BTCCSquare news:

The cryptocurrency markets experienced a severe downturn in October 2025, driven by structural liquidity pressures rather than a single catastrophic event. Benjamin Cowen, CEO of Into The Cryptoverse, attributes the selloff to tightening global liquidity conditions that had been building since the easy-money era of 2020-2021.

Market participation has narrowed dramatically, with capital flows concentrating in select tokens rather than fueling broad-based rallies. This mirrors conditions seen during the 2018-2019 crypto winter, when bitcoin peaked amid restrictive monetary policies.

The current cycle's maturity phase, combined with contracting market breadth, exposed underlying weaknesses with startling speed. Cowen's Liquidity Risk Measurement Tool indicates these pressures may persist as financial conditions remain stringent.

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