What happened?
October started with “Uptober” optimism but prices slid quickly after President Trump announced a 100% tariff on Chinese imports. Even after the Fed’s FOMC meeting delivered the rate cuts investors wanted, crypto’s market cap fell about 1.8% to $3.82 trillion. The pullback looks like a broad correction that’s wiping out excess leverage while top altcoins such as XRP, ZEC, and HYPE show mixed but resilient moves.
Who does this affect?
Retail traders and highly leveraged positions are getting hit hardest by the volatility and rapid deleveraging. Investors holding quality altcoins—XRP, ZEC, HYPE and similar projects—could be positioned to benefit if buyers step back in. Institutions, funds and on-chain projects watching ETF approvals, regulatory clarity, and partnership news will also feel the impact because those events can swing big chunks of capital.
Why does this matter?
The downturn increases short-term volatility but creates buying opportunities as weak hands are shaken out and capital can rotate into stronger projects. Regulatory decisions or spot ETF approvals would likely turbocharge winners like XRP, while privacy coins and fast DEX/layer‑1 projects could attract fresh flows. In the bigger picture, a healthier market that clears excess leverage reduces systemic risk and sets up steadier, more sustainable rallies concentrated in higher-quality tokens.