Well, October just got a little more miserable for crypto investors. The market took another dive, dropping around 3%. Bitcoin, ever the drama queen, slipped under $110,000 intraday, and Ethereum was not far behind, sinking below $3,900. If you’re holding altcoins, congratulations-your portfolio is also likely tinged red. A “risk-off” wave is sweeping across digital assets like a bad haircut, and no one is looking too good right now.
This latest slump follows one of the most brutal months of the year. The market has seen around $370 billion in value evaporate, with a staggering $19 billion in leveraged positions getting liquidated. As if that wasn’t enough, $65 billion in futures open interest was wiped out, leaving traders to reset their calculators to early-2025 levels. It’s like someone hit the “restart” button, but nobody asked for it.
Institutional support has pulled the plug as well. Spot Bitcoin ETFs saw a net outflow of $1.23B in one week-$366M of that on Friday alone. Ouch. This massive outflow removed a key buyer during a sell-off, and now the institutional support looks about as stable as a chair with one leg.
Oh, and just when you thought it couldn’t get worse, a major AWS outage hit, disrupting access on key venues like Coinbase and several DeFi platforms. The result? Wider spreads, forced unwinds, and $240M in long positions getting liquidated within 24 hours. Bitcoin even flirted with dropping to $107,500 for a hot minute. That’s a freefall worth talking about.
Musk/SpaceX Wallet Move Fuels Fear As Macro Tensions Simmer
If you thought it couldn’t get worse, then here comes Elon Musk, riding in on his SpaceX rocket to stir the pot. Apparently, trackers flagged a transfer of 2,395 BTC ($268M) from SpaceX wallets. On-chain analysts are trying to calm everyone down, suggesting that the flows look like internal reshuffling (with wallets still inactive), but the headlines have already begun to scream, “Is Musk selling?” Fear has officially taken the wheel. 🛸
The market was already fragile, with U.S.-China trade tensions reigniting, a stronger dollar, and U.S. fiscal uncertainty pushing investors toward safe havens (cash and more cash). So, the timing of Musk’s move is just like adding hot sauce to an already fiery mess. And to top it off, a Paxos operational error minted a ridiculous number of PYUSD units, quickly reversed, but still reminded traders that infrastructure risks are a real thing. It’s like trying to build a sandcastle, only to have a rogue wave come in and ruin it.
Meanwhile, altcoins took a beating worse than the majors. SOL, BNB, ADA, and DOGE all posted deeper single-day declines, while XRP managed to show some resilience thanks to fresh institutional headlines. This, my friends, is what we call a classic flight to quality. When Bitcoin stumbles, the smaller caps get trampled. 💥
What To Watch Next
If you’re still clinging to the edge of your seat, here’s what to watch: Bitcoin has some serious resistance near $112,000-$115,500, with supports around $108,000, $105,000-$102,000, and-of course-the psychological $100,000 zone. Talk about a dramatic support level. If Bitcoin can close a day above $113,000 (hello, 50-day region), things might stabilize a bit. But if it loses $101,700, well, brace yourself for a deeper bearish phase. I’m talking auto-deleveraging, stop-losses, the works. Not pretty. 😬
As for Ethereum, bulls are praying to reclaim $4,000 and the $4,050-$4,150 supply area. Anything less, and we’re looking at a bearish push toward $3,700-$3,600. So yeah, things could go from “meh” to “oh no” real fast.
In the near term, the macro catalysts will continue to dominate. The U.S. CPI report and any hints from the Federal Reserve about rate cuts or quantitative tightening (QT) will likely shift the market’s liquidity dynamics like a ship on the open sea. On the micro side, keep an eye on ETF flows. If outflows slow down, that could be a sign of a slight rebound. And, of course, don’t forget to monitor exchange uptime and whale behavior-because when the big fish move, everyone feels it.
Cover image from ChatGPT, BTCUSD chart from Tradingview
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2025-10-22 04:15