What happened?
Bitcoin dropped below $100,000 for the first time since June 2025, slipping into bear market territory after about a 20% fall from its October 6 record high. The crash wiped out over $1 trillion of total crypto market value in days and was amplified by extreme leverage and a $20 billion liquidation event around October 10. Hundreds of thousands of traders were liquidated as short-term holders intensified loss-selling and key support levels failed to hold.
Who does this affect?
Leverage-heavy retail and derivatives traders took the biggest hits, with many positions forcibly closed and short-term holders capitulating. Institutional investors and Bitcoin ETFs were less impacted and actually continued accumulating nearly 50,000 BTC over the past month, which has provided some backstop. Exchanges, market makers and anyone with margin exposure now face higher volatility and potential liquidity stress.
Why does this matter?
This matters because leverage-driven selloffs increase contagion risk, spike volatility and can trigger rapid, deep price swings across the entire crypto market. Key levels — overhead resistance around $111–$113k and support near ~$99k — will determine whether sellers or institutional buyers set the next trend, so those zones are critical for market direction. Continued ETF inflows and growing institutional demand mean recovery is possible, but the near-term outlook is riskier and more sensitive to headlines and liquidity shocks.