Crypto Bloodbath: BTC Plunges Below $108K as Fear Grip Returns to Digital Asset Markets
Digital assets tumble as market sentiment flips from greed to fear in dramatic Tuesday reversal.
Major Cryptos Take Heavy Losses
Bitcoin leads the decline, breaking below the critical $108,000 support level that had bulls cheering just days ago. Ethereum follows suit, dropping alongside other major players SOL and BNB in a synchronized market retreat that's wiping out recent gains.
Fear Index Spikes
The crypto fear and greed index swings hard into fear territory, mirroring the price action across the board. Retail investors panic-sell while institutional players watch for the bottom—because nothing says 'stable store of value' like 10% daily swings that would give traditional finance executives heart palpitations.
Market searches for new support levels as the correction deepens.
BTC, ETH, others slump as crypto market slides
Bitcoin (BTC) is currently trading at $107,659, down 3.17% in the past 24 hours, per market data from crypto.news. The leading cryptocurrency briefly tested the $110,000 level but faced strong rejection, pulling back to current support near $107,500. If this level fails to hold, BTC could retest $105,000, a zone that previously acted as strong support during recent volatility.
Ethereum (ETH) fell 5.28% to $3,860, extending its losses after failing to sustain above $4,000. solana (SOL) dropped 5.05% to $183.42, while BNB (BNB) declined 5.84% to $1,068.90. Smaller-cap altcoins and memecoins were hit even harder, with several posting double-digit losses as traders exited risk positions.
The broader crypto market capitalization now stands at $3.74 trillion, a 2% decline from yesterday’s levels, with total trading volume holding steady at $437 billion.
Can crypto prices recover as regulatory pressure eases?
Part of the market’s hesitation ties back to the ongoing U.S. government shutdown, which has stretched into its third week. WHITE House economic adviser Kevin Hassett recently told CNBC that a deal could be reached this week, which could reignite regulatory activity and bring a fresh wave of momentum back into the crypto market.
The shutdown, which began on October 1 after Congress failed to agree on spending priorities, has frozen key regulatory functions, including ETF approvals. More than 90 pending applications, covering assets like Solana, Litecoin (LTC), and XRP (XRP), remain stalled as the SEC and other agencies operate with minimal staff.
If the shutdown ends as expected, crypto regulation could resume quickly. Pending ETF decisions for major altcoins WOULD move forward, potentially unlocking significant institutional capital and serving as a strong catalyst for price recovery.
Prediction data from polymarkets shows a 44% probability that the shutdown will end between October 23 and 26. An earlier resolution could reduce uncertainty and help stabilize crypto prices heading into the final quarter of 2025.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
