The cryptocurrency market is witnessing a strong shock after Bitcoin fell to around $82,787, its lowest level in seven months, and Ethereum dropped to about $2,750, resulting in the evaporation of more than a trillion dollars in digital market value. This correction is intensifying amid economic uncertainty and a decline in institutional momentum.
What should you know?
Bitcoin is trading near $82.787, a sharp drop from its peak in October, and it has also fallen below its starting level for 2025.
Ethereum is trading around $2750 after losing most of its previous gains.
The total market cap of cryptocurrencies dropped from $4.3 trillion at the October peak to about $3.2 trillion, losing over a trillion dollars.
The U.S. economy added 119,000 jobs in September, while the unemployment rate rose to 4.4%, reinforcing the risk-averse stance in the markets.
Crypto markets are now increasingly moving with traditional assets, no longer acting as a safe haven.
Collapse features: What is driving this sharp decline?
Bitcoin's drop below $90,000 and Ethereum's fall below $2,700 indicate a clear reversal of the upward wave that began at the start of the year. The total market value, which peaked at $4.3 trillion on October 6, is now close to $3.2 trillion — a loss of about a trillion dollars.
On October 10 alone, over $19 billion in positions were liquidated, revealing the fragility of the market structure. Forced selling, outflows from ETF funds, and a shift towards risk aversion all intersect to push the correction to deeper levels.
James Butterfill, Head of Research at CoinShares, says:
"Investors are moving in the dark — they have no clear direction from macroeconomics, and all they are watching is the movement of whales on the blockchain, which concerns them greatly."
Economic background: Job data, Federal Reserve forecasts, and risk-averse stance
The delayed U.S. jobs report showed that non-farm jobs rose by 119,000 in September, surpassing expectations (around 50,000), but the unemployment rate rose to 4.4%.
This mix indicates weakness in the labor market despite continued employment.
Markets read this data as reducing the chances of early interest rate cuts by the Federal Reserve.
This shift has heavily weighed on high-risk assets, including cryptocurrencies, which are now trading as assets correlated with traditional markets rather than as alternative hedges.
Crypto markets: Why is the damage so widespread?
Correlation with stocks and global risks – Bitcoin and Ethereum are now moving in line with the global market mood.
Leverage and outflows from ETFs – mass liquidation and outflows increase selling pressure.
Breaking critical technical levels – the break of 90K for Bitcoin and 2700 for Ethereum triggered widespread algorithmic selling.
Institutional pullback – fading conviction among institutional investors as expectations for rate cuts shrink.
Price context: Where do we stand now?
Bitcoin (BTC): about $82,787 — the lowest level in 7 months, and a significant drop from the peak of $126,200 in October.
Ethereum (ETH): about $2,750 — has nearly lost all its previous gains and is far from the previous resistance of $3,100–$3,200.
What to watch for next?
Important support and resistance levels
Bitcoin:
Nearby support: 85K – 88K
Next support if broken: 80K
Ethereum:
Key support: 2,750 – 2,800
Important resistance for the rise: 3,150 – 3,200
Economic factors and market indicators
Federal signals on interest rates and inflation and job data.
Global trade risks, especially U.S. tariff decisions.
ETF fund flows and market leverage dynamics.
Sentiment indicators and market structure
On-chain data related to whale movements (buy/sell).
Liquidity flows in derivatives contracts and ETF funds.
Movements in traditional markets as early signals for crypto transitions.
Expectations
Despite the current pain, some analysts see that this correction may soon turn into a consolidation phase rather than a complete collapse.
But Bitcoin and Ethereum need a clear turnaround — whether through a return of institutional flow, economic stability, or strong accumulation on the network — to break the downward trend.
Until that happens, cryptocurrency markets will remain tied to global risks, rather than as previously portrayed as an asset growing independently.
