Since the beginning of October 2025, the cryptocurrency market has experienced a sharp decline: the total market capitalization of more than 18,000 cryptocurrencies dropped by 25%, equivalent to a loss of $1.2 trillion. The main cause of the crash was a massive sell-off of risky assets triggered by geopolitical shocks and concerns over U.S. interest rate policy.

The sharp downturn marked a reversal after summer gains. Losses accelerated due to active leveraged trading, which led to a cascade of position liquidations.

A critical moment known in the industry as “10/10” occurred on October 10. On that day, leveraged positions worth approximately $19–20 billion were liquidated, affecting over 1.6 million traders. Bitcoin’s price plunged sharply, falling below $110,000 from a peak of $125,000, while many other major cryptocurrencies — including Shiba Inu and Solana — declined by more than 40% since the start of the year.

As of November 20, Bitcoin’s price once again fell below the psychological level of $90,000, and negative sentiment spread to stock markets in Asia and Europe.

Analysts believe that despite the geopolitical shock and capital outflows, the current decline represents a prolonged correction rather than a full-scale crash, as long-term fundamental factors favoring institutional adoption of cryptocurrencies remain positive.

Experts advise investors to reduce leverage and closely monitor trade tensions to minimize risks amid heightened market volatility.

ORIENT