Crypto crash warning: Sharp volatility hits global market as investors pull back
The global cryptocurrency market saw a sharp downturn at the start of the week, with major digital assets losing billions in value within hours, reports a Qazinform News Agency correspondent.
Bitcoin retreated to about $88,650, extending its weekly decline to more than 12%, while Ethereum fell to $2,905 after a seven day drop of 14%. XRP slipped to $2 dollars 05 cents, bringing its weekly losses close to 16%. The total market capitalization now stands near $3.06 trillion, underscoring the scale of the selloff.
Bitcoin’s slide remains the main driver of the broader correction, amid tightening liquidity, high trading volumes, and renewed macroeconomic caution. Analysts note that the fall below $90,000 triggered a wave of automatic sell orders, accelerating downward pressure across the market. Capital has been moving into stablecoins such as USDT and USDC as investors seek short term protection.
Economic uncertainty and liquidations drive the decline
The latest decline follows a volatile six-week period in which more than $1 trillion has been wiped from digital assets. Bitcoin, which reached a record $126,000 in early October, briefly dipped below $81,000 on Friday before recovering part of its losses. On Monday it climbed back above $88,000, rising nearly 2% over a 24-hour span.
As Deutsche Bank analysts observed, “Whether Bitcoin stabilizes after this correction remains uncertain. Unlike prior crashes, driven primarily by retail speculation, this year’s downturn has occurred amid substantial institutional participation, policy developments, and global macro trends.”
Market sentiment has been shaped by the influx of mainstream capital through regulated spot bitcoin funds, which behave differently from long time retail investors. Interactive Brokers chief strategist Steve Sosnick noted that “the bottom line is, bitcoin is for normies now,” adding that it is increasingly treated as a volatile asset within a broader portfolio rather than a niche ideological investment.
XRP also faced pressure despite strong interest in new ETF products. Its steady decline over the week reflects broader profit taking and a risk off shift that has overshadowed asset specific catalysts.
A key factor behind the downturn is the surprise increase in the United States unemployment rate to 4.4%, the highest in four years. The weaker labor market has raised concerns about slowing economic activity even as US stock index futures rallied on expectations that the Federal Reserve may move closer to cutting interest rates. Crypto assets have reacted with sharper volatility, as they remain especially sensitive to changes in borrowing costs.
Additional pressure followed the October 10 flash crash, when renewed trade tensions between the United States and China prompted a rapid wave of liquidations across highly leveraged crypto positions, wiping out 19 billion dollars in a single day. Market analysts say the event weakened resilience among new investors and increased susceptibility to further swings.
Experts assess prospects for recovery
Despite the turbulence, some experts view the downturn as a consolidation phase rather than the beginning of a deeper correction. Gracy Chen, CEO of Bitget, said that short term volatility following strong gains is normal and reflects the sector’s maturing connection to global markets. She expects Bitcoin to stabilize and “potentially reclaim $95,000 by late November and approach $105,000 by December.”
Ethereum continues to track Bitcoin’s moves and is expected to regain momentum only after a decisive break above the $3000 level.
Earlier, Qazinform News Agency reported that China’s share of global bitcoin mining has risen again to 14% despite the nationwide ban introduced in 2021, according to updated industry data.
