$19 Billion Crypto Market Crash: Bitcoin Plunges to $105K as Fear & Greed Index Hits Extreme Fear

Bitcoin whipsawed through one of its sharpest sell-offs of 2025. In minutes, price sank toward $105,000, then snapped back above $114,000, while Ethereum slid hard alongside it. 

The rout flushed out an estimated $19B in crypto derivatives liquidations, the biggest one-day purge on record while the Crypto Fear & Greed Index collapsed to “Extreme Fear” (22/100). 

Traders rushed to cut risk. Volatility spiked. Liquidity thinned. Yet by late week, markets steadied and talk of a tactical rebound returned.

Read also : Fear and Greed Index Signals Extreme Fear: What It Means for Crypto Investors

Bitcoin and Ethereum plunge as liquidity vanishes

Bitcoin had been near record levels earlier in October, with quotes around $126K before the air pocket formed. During the crash, BTC briefly hit the $105K area on multiple venues before rebounding above $114K. 

That single session delivered a swing of roughly twelve to thirteen percent and pushed BTC under key trend markers, including the widely watched 200-day average, a move many technicians read as cautionary. 

Ether tracked the drop. Intraday, ETH fell in the 6–8% range at the worst point and saw double-digit peak-to-trough swings as order books thinned and algos chased flows. 

Altcoins fared worse, with the CoinDesk 20 sliding about 9–12% across the window as panic selling met tight liquidity. 

By October 17, snapshots showed BTC hovering near $104.7K–$106K and ETH around $3.8K–$3.85K, while crypto-linked equities also softened with the broader risk-off tone. 

A defining feature of the move was forced deleveraging. Within an hour, more than $3.3B of long positions were wiped, and over the full day, liquidations summed to $19B, with the majority hitting longs. 

Open interest contracted sharply across major derivatives venues as margin calls cascaded, which mechanically amplified downside pressure into the $105K print before buyers stabilized the tape. 

Analysts later noted that while $19B reflects positions closed, realized trader losses are typically a fraction of that headline number; still, it was a historic flush that reset leverage across the board. 

Read also : Crypto Flash Crash in Details on Crypto Market Condition Recently

Why did the crash happen? macro shock, thinning flows, and leverage

The macro spark arrived via U.S.- China trade tensions. A surprise threat of 100% tariffs on Chinese imports, tied to frictions over rare-earth exports, jolted global risk assets. 

As headlines softened later acknowledging such tariffs were “not sustainable” and flagging a possible Trump–Xi meeting equities and crypto found a modest footing. 

But the initial shock hit while liquidity was already tight, turning a sell-off into a cascade. Safe-haven bids in Treasurys and gold rose as capital rotated away from risk.

Institutional flow also wobbled. U.S.-listed crypto products had seen outflows and slower spot ETF demand into the week, weakening the buy-side cushion that had supported prior dips. 

As prices broke lower, clustered stops and high funding-rate leverage unraveled. The result: a mechanical feedback loop, price down, margin calls up, more selling until open interest had shed tens of billions and the market reached “forced-seller exhaustion.” 

Post-event recaps from market desks described it as a deleveraging shock rather than a change in long-term fundamentals, with the CoinDesk 20 and total crypto market cap absorbing the bulk of the hit before stabilizing.

Context matters: by mid-October the backdrop featured rate sensitivity, bank-loan jitters, and headline risk. When macro turns hostile, crypto trades like a high-beta risk asset. 

The breach of the 200-day average on BTC reinforced near-term caution, with several strategists warning that $100K is the line in the sand for sentiment. 

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Extreme Fear at 22: what sentiment says and what it doesn’t

The Crypto Fear & Greed Index cratered to 22/100, its first Extreme Fear print in months. Historically, such washes often align with local or cyclical lows because forced sellers are largely out, and stronger hands can accumulate. 

Past episodes with extreme fear were followed by recoveries once macro stress faded and flows returned. 

This does not guarantee a bottom, but it does suggest downside risk is increasingly event-driven rather than structural, especially after leverage has been rinsed from the system.

Data around the event supports that view. The largest chunk of liquidations were longs, and BTC rebounded quickly after the initial spike down, reclaiming the $113K–$114K zone before settling lower. 

ETH showed a similar pattern, with steep intraday wicks and a fast, partial snapback. These are classic fingerprints of a liquidity vacuum rather than a slow, trend-driven unwind. 

As headlines about tariffs softened and a possible U.S.–China meeting circulated, both crypto and equities stabilized, suggesting the macro overhang not network fundamentals was the primary driver. 

Still, sentiment cuts both ways. Extreme fear can linger if new shocks hit or if key technical levels break. Traders are watching whether BTC can hold above $100K and reclaim the $117K area that many analysts mark as a pivotal resistance and cost-basis cluster. 

If that zone is recaptured with volume, the bear case weakens fast. If not, chopping or another leg lower is possible. Either way, the sentiment reset creates space for constructive price discovery once macro noise eases. 

Read also : Bitcoin, Ethereum & XRP on Edge: Is a Deeper Price Correction Coming?

What to watch next: flows, levels, and catalysts

First, watch flows into and out of spot ETFs and major exchanges. If net outflows slow and funding normalizes, that’s the tell that forced sellers are spent. 

Second, watch level-by-level reactions. Holding $100K keeps the structure intact; firm acceptance back above $113K–$117K would signal that buyers have regained control. 

Third, watch macro catalysts tariff rhetoric, any hint of policy de-escalation, and risk appetite in equities. When the tariff tone softened, markets stabilized; a formal meeting or roadmap could extend that relief. 

For ETH, the checklist is similar: funding and open interest, depth around $3.7K–$3.9K, and correlations with BTC during risk-on days. 

If BTC steadies, ETH usually follows, though high-beta altcoins may lag until confidence returns. Across the market, positioning should stay unlevered or modestly levered, with staggered entries and hard stops. 

The point of a reset is not to chase every bounce but to let liquidity return and let the tape confirm. Historical playbooks show that after record liquidations, volatility stays elevated for days, then cools as new longs are cautious and shorts cover into strength. 

A human checklist for the next week

Keep cash optionality. Avoid revenge trades. Use smaller sizes. Respect key levels. And remember that sentiment extremes often fade faster than they arrive.

Read also : Bitcoin Warning: What Happens If BTC Breaks Below $110,000 Support?

Conclusion

The mid-October sell-off was dramatic, fast, and mechanical. BTC’s plunge to ~$105K, ETH’s slide, and the $19B liquidation headline were the visible surface of a deeper leverage reset sparked by macro shock. 

The Fear & Greed Index at 22 tells us panic peaked. History says such extremes can set the stage for rebounds once headlines calm and flows normalize. Near term, hold the $100K line and watch for a clean reclaim of $113K–$117K. 

Medium term, the structural story growing institutional participation and robust network demand remains intact, even if the ride is bumpy. 

FAQ

What caused the crypto market crash in October 2025?

A tariff shock in the U.S.–China trade dispute hit a market already rich in leverage and thin in liquidity, triggering forced liquidations and a sharp risk-off move.

How low did Bitcoin fall, and how fast did it rebound?

BTC briefly traded near $105K before rebounding above $114K within minutes, then stabilized lower as volatility cooled.

Why does the $19B liquidation figure matter?

It marks a record one-day deleveraging, wiping out mostly long positions and resetting open interest, often a precondition for healthier price action. 

What does an Extreme Fear score of 22 imply?

It reflects maximal pessimism. Historically, such prints often align with local bottoms, but confirmation still depends on price and flows. 

Which price levels are key now?

For BTC, watch $100K as support and $113K–$117K as resistance. A decisive reclaim weakens the bear case.