Crypto Drawdown Turns “Systemic” in Scale: Market Value Down About $2 Trillion Since Oct 2025 Peak

The latest crypto selloff is being described as “systemic” in scale, after Reuters reported that the total market capitalization of digital assets has fallen by roughly $2 trillion from its October 2025 peak. Bitcoin briefly dropped to around $66,675 — a low not seen in a long time — while Ether also slid sharply, extending the risk-off move across major tokens.

Market participants said the breadth of the decline suggests more than a single-asset correction. Instead, it reflects a broad repricing of risk, as leverage is reduced, liquidity tightens, and investors reassess exposure across crypto, equities, and other risk-sensitive markets.

Traders noted that big round-number levels and recent lows can act as “magnets” for volatility, especially when derivative positioning is heavy. In such conditions, liquidations and forced position closures can accelerate moves, pushing prices quickly through support zones.

What markets are watching next

• Leverage indicators: funding rates and open interest to gauge whether de-risking continues.
• Spot demand: whether buyers step in meaningfully at depressed levels.
• Macro catalysts: shifts in rate expectations and the U.S. dollar that can drive risk appetite.
• Market breadth: whether selling stays broad-based or becomes more selective.

For now, the message remains cautious: a drawdown of this magnitude highlights how quickly sentiment can flip when liquidity and leverage unwind at the same time.