- The cryptocurrency market’s October slump has worsened, falling an additional 3%.
- Bitcoin dropped below $110,000 while Ethereum slipped under $3,900.
- The market has lost roughly $370 billion in value this month alone.
The brutal downturn in the cryptocurrency market during October deepened further, with another 3% decline pushing Bitcoin under the key $110,000 level and dragging most major altcoins deeper into the red.
This broad drawdown represents the latest chapter in one of the toughest months of the year for digital assets, driven by a potent risk-off wave created by fading institutional support, technical disruptions, and mounting macroeconomic tensions.
The scale of the recent damage is staggering. The market has wiped out about $370 billion in value this month alone, and some $19 billion worth of leveraged positions have been liquidated.
Futures open interest also plunged, with roughly $65 billion evaporating and market activity resetting to levels not seen since early 2025.
Institutional support thins as ETF outflows accelerate
A key driver of the recent weakness is a dramatic and worrying reversal in institutional sentiment.
After months of robust inflows, spot Bitcoin ETFs have become a significant source of selling pressure, recording astonishing weekly net outflows of approximately $1.23 billion.
That figure includes a massive $366 million outflow in a single Friday session, removing an important layer of buy-side support from an already fragile market.
Perfect storm: AWS outage and SpaceX transfer stoke fear
The underlying weakness was compounded by a perfect storm of technical and psychological blows.
A major outage at Amazon Web Services (AWS) disrupted access to several key crypto services in the United States, including large platforms such as Coinbase and multiple DeFi front ends.
That disruption widened spreads, accelerated forced liquidations, and wiped out more than $240 million in long positions within 24 hours, briefly pushing Bitcoin down toward $107,500.
Sentiment frayed further after on-chain trackers flagged a large transfer of 2,395 BTC (about $268 million) from wallets associated with SpaceX. Although analysts suggested the move was likely an internal custody reshuffle, headlines asking whether “Mr. Musk is selling” stoked additional fear across an already nervous market.
What to watch next as the market faces a crisis
Technically, the market sits at a critical inflection point. Bitcoin is confronting a heavy resistance band between $112,000 and $115,500, while key support levels currently lie at roughly $108,000 and $105,000.
For stability to return, the market needs a decisive daily close above the 50-day moving average, near $113,000. Failure to do so would strengthen the psychological $100,000 barrier and increase the risk of a deeper bearish phase.
Near-term catalysts remain firmly tied to macroeconomic developments. Upcoming U.S. consumer price index (CPI) data and any new signals on interest rates from the Federal Reserve are the most likely events to move the market next.
For now, the battered cryptocurrency market appears resigned to nursing its wounds and waiting for the storm to pass, with investors watching closely for signs of stabilization or further deterioration.