Bitcoin News Today: Macro Uncertainty and Leverage Spark Crypto's $40B Freefall

The global cryptocurrency market has been gripped by a sharp selloff, erasing over $40 billion in value within hours as Bitcoin and Ethereum plummeted to multi-month lows. The downturn, which accelerated in late November 2025, has reignited concerns about market stability amid record liquidations and macroeconomic uncertainty. Bitcoin fell below $85,000 from a peak of $126,000 in early October, while Ethereum dropped more than 40%, reflecting a broader collapse in risk appetite according to data. The total market capitalization of cryptocurrencies shrank from a record $4.2 trillion to under $3 trillion, marking one of the largest corrections since the FTX-driven crisis of 2022 according to reports.

Comparisons to the 2022 bear market are inevitable. While this year's crash has been severe-erasing $1.3 trillion in value-it pales in scale against the 73% plunge in Bitcoin's price following FTX's collapse, which saw the asset bottom at $15,500 according to data. However, the 2025 downturn has exposed new vulnerabilities. In October alone, $19 billion in leveraged positions were liquidated in a single day, a figure surpassing the worst of 2022. Analysts attribute this to heightened institutional participation and the growing reliance on leveraged trading, which amplifies volatility during downturns.

The selloff was triggered by a confluence of factors. A surprise rise in the U.S. unemployment rate to 4.4%-the highest in four years-spooked investors, who began shifting capital into stablecoins like USDT and USDC according to reports. This trend was compounded by a flash crash on October 10, when renewed U.S.-China trade tensions triggered $19 billion in liquidations, destabilizing confidence among new investors. Deutsche Bank analysts noted that the current correction differs from past crashes, as it unfolds amid significant institutional adoption and evolving regulatory frameworks according to analysts.

Retail and institutional investors have responded with caution. Bitcoin's monthly RSI hit levels last seen during the 2022 and 2020 crashes, raising questions about whether the market has found a bottom. Meanwhile, the influx of mainstream capital through regulated spot Bitcoin funds has shifted investor behavior. Interactive Brokers' Steve Sosnick observed that Bitcoin is increasingly treated as a volatile mainstream asset rather than an ideological investment. This shift has made the market more susceptible to macroeconomic trends, such as expectations for Federal Reserve rate cuts.

Despite the turbulence, some experts view the correction as a necessary consolidation phase. Bitget's Gracy Chen expects Bitcoin to stabilize and reclaim $95,000 by late November and $105,000 by December according to forecasts. Ethereum, which has mirrored Bitcoin's trajectory, may regain momentum once it breaks above $3,000 according to projections. However, the path to recovery remains uncertain. Traders are awaiting clarity on macroeconomic data and policy developments, while the recent selloff has highlighted the fragility of leveraged positions in a market still grappling with regulatory and structural challenges according to analysis.