The cryptocurrency market witnessed a staggering $1 trillion loss since early October 2025, triggered by institutional withdrawals and policy shifts, affecting major coins like Bitcoin and Ethereum.
This downturn amplifies market volatility and prompts comparisons to previous major selloffs, intensifying investor concerns.
Crypto Markets Shed $1 Trillion Since Early October
Since early October, the crypto markets have experienced a $1 trillion downturn. Major cryptocurrencies like Bitcoin and Ethereum led the decline, with cascading liquidations and macroeconomic factors further exacerbating the situation. The events have drawn comparisons to past cycles.
Institutional investors such as BlackRock withdrew over $1.15 billion from Bitcoin ETFs. Federal Reserve policies, along with statements from key figures like Donald Trump, added volatility to the market. The Federal Reserveโs stance on inflation and interest rates remains a pivotal factor.
โWhile inflation has moderated, it remains above our long-term target. Further rate cuts are not assured at this time.โ โ Jerome Powell, Chair, Federal Reserve
Institutional Outflows Drive Market Reassessments
The crypto marketโs decline has sparked substantial financial and strategic reassessments. Many traders and analysts warn of volatile conditions echoing past downturns. Institutional outflows are accelerating as asset managers reconsider their crypto exposure amidst macroeconomic uncertainties.
Historically, prolonged sell-offs have followed all-time highs, necessitating caution among investors. Identification of support levels and liquidation risks is crucial as the market navigates this challenging period. Long-term players retain confidence in eventual resurgence despite current pressures.
Market Parallels Drawn to 2018 and 2022 Crises
The ongoing decline parallels bear markets such as those in 2018 and 2022, characterized by steep sell-offs and institutional withdrawal. Historically, these corrections have paved the way for recovery, despite initial drawdowns in digital assets.
Gadi Chait, an investment manager, and Nigel Green, CEO of deVere Group, emphasize the importance of maintaining a long-term perspective. They note the potential for significant upside following market corrections, offering a perspective against short-term panic.
โVolatility of this magnitude always provokes anxiety, but it also exposes value. This moment demands perspective, not panic โฆ Every major correction in bitcoinโs history has opened the door to substantial upside for patient investors.โ โ Nigel Green, CEO, deVere Group
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