Bitcoin crash wipes out summer rally: What Wall Street isn’t telling you
The downturn follows a brutal wave of liquidations in October that erased billions in bullish bets. Since then, traders have largely remained on the sidelines.
- Nov 5, 2025,
- Updated Nov 5, 2025 11:11 AM IST
Bitcoin has erased its summer rally, plunging below $100,000 for the first time since June and signaling renewed volatility in the crypto market amid fading institutional interest and risk-off sentiment across global assets, Bloomberg reported.
The flagship cryptocurrency fell as much as 7.4% on Tuesday in New York to $96,794 — marking a more than 20% drop from its all-time high a month ago and officially entering bear market territory. Ether tumbled as much as 15%, and smaller altcoins recorded even steeper losses, with several down over 50% this year.
The downturn follows a brutal wave of liquidations in October that erased billions in bullish bets. Since then, traders have largely remained on the sidelines. Open interest in Bitcoin futures remains significantly below pre-crash levels, and despite favorable funding conditions, few are rushing back in.
“Bitcoin’s decline to the June lows reflects a market structure still grappling with the psychological overhang from October’s massive liquidation event,” said Chris Newhouse, director of research at Ergonia, a DeFi-focused research firm. He noted that the event “has fundamentally altered how participants engage with the prevailing downtrend.”
Tuesday’s total liquidation stood at $1 billion — a fraction of the $19 billion wiped out on Oct. 10, according to Coinglass data. Meanwhile, options traders are hedging for deeper downside, with significant demand for $80,000 strike puts expiring later this month, per Deribit.
Bitcoin's fall echoes the broader market pullback in high-growth tech stocks like Nvidia and Palantir, underscoring its current role as a barometer for speculative appetite.
The token briefly rebounded during early Asia trading Wednesday, rising 1.6% to $101,130 as of 8:27 a.m. in Singapore. Other digital assets also trimmed losses slightly.
Crypto markets are facing additional headwinds, including sustained outflows from spot Bitcoin and Ether ETFs and concerns over potential selling pressure from corporate treasury wallets. Analysts say the recent moves reflect short-term momentum plays rather than confident directional trades.
Bloomberg noted the market remains fragile, with traders reluctant to re-engage after October’s shock reset.
Bitcoin has erased its summer rally, plunging below $100,000 for the first time since June and signaling renewed volatility in the crypto market amid fading institutional interest and risk-off sentiment across global assets, Bloomberg reported.
The flagship cryptocurrency fell as much as 7.4% on Tuesday in New York to $96,794 — marking a more than 20% drop from its all-time high a month ago and officially entering bear market territory. Ether tumbled as much as 15%, and smaller altcoins recorded even steeper losses, with several down over 50% this year.
The downturn follows a brutal wave of liquidations in October that erased billions in bullish bets. Since then, traders have largely remained on the sidelines. Open interest in Bitcoin futures remains significantly below pre-crash levels, and despite favorable funding conditions, few are rushing back in.
“Bitcoin’s decline to the June lows reflects a market structure still grappling with the psychological overhang from October’s massive liquidation event,” said Chris Newhouse, director of research at Ergonia, a DeFi-focused research firm. He noted that the event “has fundamentally altered how participants engage with the prevailing downtrend.”
Tuesday’s total liquidation stood at $1 billion — a fraction of the $19 billion wiped out on Oct. 10, according to Coinglass data. Meanwhile, options traders are hedging for deeper downside, with significant demand for $80,000 strike puts expiring later this month, per Deribit.
Bitcoin's fall echoes the broader market pullback in high-growth tech stocks like Nvidia and Palantir, underscoring its current role as a barometer for speculative appetite.
The token briefly rebounded during early Asia trading Wednesday, rising 1.6% to $101,130 as of 8:27 a.m. in Singapore. Other digital assets also trimmed losses slightly.
Crypto markets are facing additional headwinds, including sustained outflows from spot Bitcoin and Ether ETFs and concerns over potential selling pressure from corporate treasury wallets. Analysts say the recent moves reflect short-term momentum plays rather than confident directional trades.
Bloomberg noted the market remains fragile, with traders reluctant to re-engage after October’s shock reset.