The cryptocurrency market experienced one of its worst periods in October 2025, as the positive seasonal expectations known as "Bullish October" turned into what analysts described as "the most cursed month" in the history of cryptocurrencies. Here are the key highlights of this crash:
· Record liquidations: On October 11, 2025, the "Black Swan" event led to the liquidation of $19.37 billion in leveraged positions within just 24 hours, marking the largest single-day crash in history. This wiped out $65 billion in open interest in the market and evaporated $370 billion in total market capitalization.
· Sharp Collapse of Major Coins: All currencies traded were severely affected:
· Bitcoin (BTC): Dropped 18% from its peak of $126,000 to around $104,782.
· Ethereum (ETH): Fell by 20% to below $4,000.
· Solana (SOL): Altcoins like Solana have seen catastrophic losses ranging from 60-80%.
· BNB: Despite achieving new record levels previously, it has declined along with the rest of the market.
💸 Why Trading is Risky: Ongoing Risk Factors
The recent collapse is not an isolated incident, but rather a result of structural risks in the trading market:
· Margin Trading: The standard liquidations were directly caused by investors trading with massive amounts of leverage. When prices move against them, even slightly, they are forced to exit their positions automatically, creating a downward spiral and increasing volatility.
· Geopolitical and Economic Factors: Escalating trade tensions between the United States and China were the main trigger for the market panic. Additionally, expectations of interest rate decisions from the U.S. Federal Reserve are causing investors to shy away from high-risk assets like cryptocurrencies.
· Hacking Risks: The chaos in October was exacerbated by a wave of cyberattacks, where hackers exploited security vulnerabilities in decentralized protocols to steal millions, further eroding investor confidence.
📉 Specific Warnings for Altcoin Traders
While Bitcoin typically recovers from collapses, altcoins like SOL and BNB remain the most affected. Data indicates that over 97% of the top 100 altcoins experienced simultaneous declines, with second-layer tokens leading losses of up to 70%. Even after partial recovery, these coins are still suffering significantly, exposing traders buying them to the risk of large and ongoing losses.
🛡️ Conclusion: A Call for Caution
What happened in October 2025 is a stark reminder of the risks involved in trading in the cryptocurrency market, especially with leverage or reliance on speculation in volatile altcoins. While some analysts expect Bitcoin to recover in the long term and reach $200,000 by the end of the year, the journey is fraught with violent fluctuations that can wipe out the capital of careless investors in hours.
