Bitcoin’s Drop Below $105,000 Pushes Crypto Market Cap to Its Lowest Point Since July
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Written by
Simonas Brazionis - Updated 2025-10-17 10:28:11
Analysts say the broader crypto uptrend remains intact, even as fears over U.S. bank instability drive investors toward safer assets.
The cryptocurrency market suffered fresh losses on Thursday, with Bitcoin leading a sell-off that dragged major altcoins to multi-week lows. According to CoinGecko, Bitcoin plunged 5.6% in 24 hours to touch an intraday low of $104,853, pulling the total crypto market capitalization down 5.9% to $3.64 trillion — the weakest level since July 2025.
Market-maker Caladan’s head of research, Derek Lim, told Decrypt that the panic began in traditional finance. Reports of potential loan issues at U.S. regional banks such as Zions Bancorporation and Western Alliance triggered sharp declines in their share prices, spilling over into riskier assets like crypto.
“As worries spread through the banking sector, investors quickly shifted to safety,” Lim explained. “That loss of risk appetite hit all markets hard, including crypto.”
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Altcoins Follow Bitcoin’s Lead
The market downturn extended beyond Bitcoin. Ethereum dropped 7.4%, while XRP, Solana, Tron, Dogecoin, and Cardano fell between 4% and 9%. BNB was hit hardest, tumbling 12.3% in a single day.
The sharp price declines triggered over $1.09 billion in liquidations, with Bitcoin and Ethereum trades accounting for more than half, according to CoinGlass.
Analysts Still See a Bullish Structure
Despite the widespread sell-off, Lim believes crypto’s long-term setup remains strong, pointing to a “bullish market structure” and continued optimism among traders.
On the Myriad prediction market (developed by Decrypt’s parent company, Dastan), users currently assign a 66% probability that Bitcoin will outperform Ethereum by the end of October.
Still, near-term sentiment is cautious. A separate market tracking Bitcoin’s next move shows a 68% chance of the price dropping toward $100,000, compared to a smaller likelihood of climbing back to $120,000.
Context: A ‘Black Friday’ Shock Still Looms Large
The broader fear follows last week’s so-called “Black Friday” event, when Bitcoin collapsed 17% within hours after U.S. President Trump imposed 100% tariffs on Chinese imports in response to Beijing’s export restrictions on rare minerals. Around $20 billion in leveraged positions were wiped out that day, marking one of the year’s largest liquidation waves.
Altcoins remain fragile as the market works through that fallout, leaving traders cautious amid continuing macroeconomic uncertainty.
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