Bitcoin’s price recently dipped below $105,000, leading the entire cryptocurrency market to its lowest valuation since July 2025. The total market capitalization of all cryptocurrencies fell by 5.9% to approximately $3.64 trillion, reflecting a significant downturn.
Details of the Market Downturn
The decline in the cryptocurrency market was primarily driven by a “flight to safety.” This phenomenon was triggered by rising concerns surrounding the stability of U.S. regional banks. Reported issues related to loan portfolios at several banks, including Zions Bancorporation and Western Alliance, prompted a steep sell-off in bank stocks, which, in turn, affected risk assets such as cryptocurrencies.
Derek Lim, head of research at Caladan, emphasized that as fears spread through the financial sector, risk appetite diminished significantly across various markets. He noted, “Naturally, crypto dropped as traders initiated a flight to safety.”
Impact on Major Cryptocurrencies
Bitcoin saw a notable decline of 5.6% within 24 hours, hitting an intraday low of $104,853. This downturn influenced the broader market, with many major altcoins witnessing substantial losses:
- Ethereum: -7.4%
- XRP: -4% to -9%
- Solana: -4% to -9%
- Tron: -4% to -9%
- Dogecoin: -4% to -9%
- Cardano: -4% to -9%
- BNB: -12.3%
As a result of the market’s decline, liquidations soared to $1.09 billion, with traders holding Bitcoin and Ethereum representing over 55% of this total, according to CoinGlass data.
Market Sentiment and Future Outlook
Despite the immediate challenges facing the cryptocurrency sector, Lim maintained a cautiously optimistic perspective. He pointed to a “bullish market structure” as a potential stabilizing factor for future market movements.
Market sentiment also reflected some optimism. Users on the prediction market Myriad indicated a 66% chance that Bitcoin would close October with a more positive performance than Ethereum. However, a market regarding Bitcoin’s potential price movement toward either $120,000 or $100,000 indicated a rising likelihood of the latter outcome, which surged to 68%.
In conclusion, while the cryptocurrency market experienced significant declines, particularly with Bitcoin dropping below $105,000, there remains a mix of caution and optimism among traders as they navigate these turbulent waters.
