The cryptocurrency market has experienced a sharp decline following the October highs, erasing nearly all the gains realized since the beginning of 2025. Based on on-chain data, the total market cap of the cryptocurrency market has decreased by more than 20% from $4.4 trillion in October to $3.32 trillion. 

Bitcoin slumped from its all-time high of $ 126,200 on November 10 to trading below $100,000 at the beginning of this week. The bearish trend triggered a sudden surge in selling pressure, resulting in rushed liquidations across trading platforms. 

The crypto market loses 25% in market cap to $3.4 trillion

According to on-chain data as of October 11, the crypto market experienced $19.16 billion in liquidations, the highest figure to date. The October liquidation surpassed the $1.2 billion triggered by the Covid-19 pandemic and the FTX crash, which resulted in $1.6 billion in liquidations.

President Trump’s pro-crypto policies drove Bitcoin nearly 35% higher since his inauguration in January, following a wave of activity across the market during the December elections. The gains had been sustained throughout the year until recently, when the market underwent a correction. 

So far, the crypto market has recovered slightly, standing at just over 2.5% of its previous gains, after losing more than 24% following the October liquidations. 

U.S. spot ETFs have also played a role in the recent dip after a sustained period of outflows. For instance, U.S. spot ETFs have experienced over $1 billion in outflows since the bearish momentum began in late October. 

SoSoValue data shows that U.S. Bitcoin ETFs recorded a net outflow of $662 million in November alone, reversing the net inflows of $3.42 billion recorded in October. Ethereum ETFs suffered $461 million in liquidations in November, reversing the $ 569 million net increase in October.  

Crypto market’s Fear and Greed Index drops to 21, signifying extreme fear

According to CoinMarketCap data, the Fear and Greed CMC index has dropped to 21 from highs of 54 at the beginning of the year, indicating a shift toward extreme fear in the market. According to a Cryptopolitan report, leading trading platforms such as Binance consistently faced pressure during periods of extreme fear. For instance, on October 11, trading platforms widely experienced technical glitches due to sustained market liquidations. The report highlighted that users experienced frozen order books, app lag, and temporary lockouts. 

At the current low reading of the Fear and Greed Index, 21, Bitcoin has traded again below $100,000 after a brief rebound yesterday. The token has reached a low of $99,257 today and rebounded to its current value of $100,392. BTC had shown signs of regaining above the support level of $104,000 just two days ago. The sustained volatility underpins the current level of fear. 

So far, Bitcoin has dropped 8.94% this week, marking one of the worst weekly drops since March. The 200-day moving average for BTC has also crossed the support level that was held since the 2022 bear market, signifying a potential sustained bearish momentum.

Jeff Mei, Chief Operating Officer of BTSE crypto exchange, described the recent dip in the crypto market as partly driven by concerns over AI stocks being overvalued. According to Mei, a selloff across the AI and tech stocks would likely signify that BTC could fall below the $100,000 level and altcoins could fall even further. 

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