In a brutal day for digital assets, the crypto market lost over $130 billion in total market capitalization, as sharp price drops rattled investors across the board. The sell‑off affected all major cryptocurrencies, with Bitcoin, Ethereum, and altcoins posting steep declines amid global market jitters.
This sharp downturn comes on the heels of worsening macroeconomic conditions and rising geopolitical fears. But it’s not just crypto taking the hit—gold is also plunging, signaling a broader liquidity crunch across risk and safe‑haven assets alike.
Gold Dump May Signal What Comes Next
While the double‑dip in both gold and crypto may seem discouraging, some analysts see a familiar pattern forming. Historically, when gold tops out and begins to fall, liquidity often rotates into Bitcoin and other digital assets, especially as investors seek higher returns and faster‑moving markets.
This could set the stage for a parabolic crypto rally, especially if October and Q4 follow previous cycles. On‑chain data shows many long‑term holders are unfazed by the drop, viewing it as a shakeout rather than a trend reversal.
Crypto influencers and analysts are echoing this sentiment, with growing belief that late October could mark the bottom before a strong end‑of‑year push.
BREAKING: $1.2 TRILLION HAS BEEN WIPED OUT FROM THE STOCK MARKET TODAY.
— Ash Crypto (@Ashcryptoreal) October 10, 2025
PRAY FOR CRYPTO. pic.twitter.com/TiGFJBzSfb
Short‑Term Pain, Long‑Term Gain?
The recent liquidation wave and sudden cap loss have caused panic among some traders, but others are holding firm. As one popular sentiment online puts it: “Don’t get shaken out—this is just manipulation before the run.”
If the past is any guide, sharp downturns often precede explosive recoveries in the crypto market. Combined with weakening gold prices and potential monetary easing on the horizon, Q4 could still be a major turning point.