Market analysis reveals October turbulence with cautious outlook ahead
TL;DR
The crypto market experienced high volatility and a slight decline in total value during October 2025.
A shift in U.S. monetary policy injected liquidity, but broader economic recovery remained weak.
A sudden trade policy announcement triggered a sharp market crash and record-level trader liquidations.
The cryptocurrency market underwent a phase of high volatility during October 2025. This period was marked by an abrupt event that triggered substantial capital movements. Overall activity showed a downward trend in total valuation, with a 0.57% reduction in total market capitalization.
US monetary policy began an easing cycle. The Federal Reserve cut its benchmark interest rate by 25 basis points. Simultaneously, it announced a halt to the reduction of its balance sheet. These actions injected liquidity into the financial system. However, the broader economic recovery remained limited. Inflation persisted above the two percent target. Labor market conditions showed signs of weakening.
An Abrupt Event and Its Consequences
On October 10, an announcement on trade policy triggered an immediate reaction in global markets. Risk assets, including cryptocurrencies, recorded sharp declines within a short timeframe. Trading volume in the crypto market reached $428.2 billion during that session. This activity peak reflected a release of capital driven by a rapid reassessment of risk.
Source: Coinglass
Afterwards, activity stabilized at lower levels. Bitcoin and Ethereum exchange-traded funds recorded net capital inflows of $5.55 billion and $1.01 billion, respectively.
These flows indicated a partial recovery in institutional confidence. The circulation of stablecoins increased by $9.38 billion. Yet, the stability of these instruments was tested. USDe, an algorithmic stablecoin, temporarily lost its peg, falling to $0.60.
Source: Coinglass
The overall market decline caused record liquidations of trading positions. The total liquidated value reached $19.1 billion. This event revealed risks associated with high leverage within the system. Alternative tokens, or altcoins, were the most affected, with many units registering substantial losses. The search for yield in this new landscape, however, began migrating toward prediction markets and projects in infrastructure sectors.
Filed under: News - @ November 3, 2025 1:27 pm