Bitcoin Drops Below Key Level as Altcoins Extend Losses Amid Market Jitters

 

Bitcoin Sinks to $105K as $1.23 Billion in Liquidations Rattle Global Crypto Market

The cryptocurrency market endured another volatile session on Friday, with over $1.23 billion in leveraged positions liquidated in the past 24 hours. Bitcoin (BTC), the world’s largest digital asset, fell sharply to $105,000, marking its lowest level in nearly four months. The broad selloff underscores a renewed wave of investor caution amid escalating global macroeconomic uncertainty and a growing appetite for safe-haven assets such as gold.

According to data from Coinglass, long traders accounted for more than 70% of total liquidations as aggressive leverage met heightened market volatility. The sudden wave of forced selling drove Bitcoin and Ethereum (ETH) lower, while major altcoins also saw steep declines ranging between 7% and 12%.

Market Under Pressure Amid Risk-Off Shift

The global risk appetite has weakened considerably as investors seek refuge in traditional safe assets. Gold prices surged to an all-time high, reflecting a broader “flight to safety” amid persistent U.S.–China trade tensions and renewed fears of fragility in the banking sector.

“The market is in full risk-off mode,” said Marcus Lim, senior market strategist at Quantum Research Partners. “Traders are moving out of crypto and high-beta assets as uncertainty builds in both economic and political fronts.”

Bitcoin’s 1.23% decline over the past 24 hours adds to a weekly loss of 3.34%. Ethereum followed suit, dropping below $3,800, even as some short-term traders attempted to “buy the dip.” Despite the modest bounce seen late Friday, analysts caution that overall sentiment remains fragile.

Altcoins such as Solana (SOL), BNB, and Cardano (ADA) also posted significant declines. Many of these assets, which benefited from speculative inflows earlier in the month, are now showing signs of exhaustion as liquidity tightens.

$1.23 Billion Liquidations Deepen Selloff

The latest correction was largely driven by a cascade of liquidations in the derivatives market, particularly from overleveraged long traders who had bet on a quick rebound. Data shows that nearly $680 million in Bitcoin positions and $410 million in Ethereum contracts were wiped out within a single trading day.

“The size and speed of these liquidations suggest traders were overly exposed,” noted Clara Hughes, head of digital asset analytics at Matrixport. “The forced unwinding exacerbated volatility and dragged Bitcoin to its lowest point since early July.”

These mass liquidations follow weeks of aggressive speculative positioning in futures and perpetual swap markets. The funding rates, which had turned positive earlier this week, have now swung into negative territory—indicating a growing bearish sentiment among traders.

Ondo Finance Challenges Nasdaq’s Tokenized Securities Plan

Beyond market turmoil, regulatory tensions are also adding to the uncertain landscape. Ondo Finance, a blockchain-based asset management firm, has formally asked the U.S. Securities and Exchange Commission (SEC) to delay or deny Nasdaq’s proposal to trade tokenized securities.

In a detailed letter submitted Wednesday, Ondo raised concerns over the lack of transparency in Nasdaq’s filing, arguing that it relies on confidential and undisclosed technical frameworks that could give large institutions an unfair advantage over smaller market participants.

While Ondo expressed support for tokenization in principle, it urged the SEC to require full public disclosure of the system’s design—particularly regarding its integration with the Depository Trust Company (DTC), a key player in securities settlement.

“Nasdaq’s proposal, without DTC’s finalized participation, risks creating an unbalanced system that favors incumbents,” the letter stated. “Full transparency is crucial before granting regulatory approval.”

The SEC is expected to review Nasdaq’s filing through early November, though the timeline could extend into December. The decision will likely set a precedent for how traditional exchanges handle tokenized equities and other blockchain-based investment products.

Japan’s Top Banks Advance Yen-Backed Stablecoin Project

In Asia, Japan’s largest financial institutions are moving forward with a joint yen-backed stablecoin initiative, signaling a major step toward the mainstream adoption of blockchain in traditional finance.

According to a report from Nikkei Asia, Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp. (SMBC), and Mizuho Bank are collaborating on the launch of a standardized digital currency built on MUFG’s Progmat platform. The stablecoin will be pegged 1:1 to the Japanese yen and is designed to reduce transaction costs and enhance payment efficiency for corporate settlements.

The consortium aims to roll out the stablecoin by the end of 2025, with Mitsubishi Corp. set to become the first to use the token for internal corporate payments. With more than 240 global subsidiaries, Mitsubishi expects the initiative to streamline its international financial operations and reduce administrative costs.

If successful, this would mark Japan’s first bank-supported stablecoin network, potentially transforming how businesses handle domestic and cross-border payments. It also highlights Japan’s growing ambition to position itself as a leader in regulated digital finance.

Crypto ETF Filings Surge Despite U.S. Government Shutdown

Meanwhile, in the United States, the crypto ETF race continues to accelerate even amid the ongoing federal government shutdown. At least five new ETF applications were submitted to the SEC this week, underscoring growing institutional interest in digital assets.

VanEck, a long-time crypto fund manager, filed for a Lido Staked Ethereum ETF (stETH), which aims to track returns from Ethereum’s liquid staking protocol. The fund intends to generate yield through on-chain staking rewards, marking a significant innovation in crypto-based financial products.

At the same time, 21Shares submitted a proposal for a leveraged crypto ETF offering 2x daily exposure to the Hyperliquid (HYPE) token. Despite regulatory headwinds and delays, these filings reflect the market’s determination to expand investment avenues for both institutional and retail investors.

“ETFs are becoming the bridge between traditional finance and the digital economy,” said Andrew Kim, managing director at Global Crypto Advisors. “Even during government shutdowns or market downturns, companies are positioning themselves for the next wave of capital inflows.”

Market Outlook: Volatility Persists as Caution Dominates

Analysts expect the coming weeks to remain turbulent as macro headwinds and regulatory uncertainties weigh on investor sentiment. With Bitcoin trading precariously around $105,000, traders are watching closely for signs of stabilization.

“Unless we see a strong rebound in trading volumes and renewed institutional inflows, Bitcoin could retest the $100,000 mark,” warned Hughes. “The $1.23 billion liquidation event has left deep scars on market confidence.”

Still, not all outlooks are bearish. Some market strategists view the pullback as a healthy correction following months of overextension. “Crypto markets move in cycles,” said Lim. “These shakeouts tend to remove excess leverage and pave the way for longer-term growth.”

With global markets shifting toward defensive positioning, safe-haven assets like gold and U.S. Treasuries may continue to outperform in the short term. However, long-term believers in digital assets argue that such corrections offer valuable entry points for disciplined investors.

Conclusion

The sharp decline in Bitcoin and the wider crypto market reflects a broader flight to safety as economic uncertainty mounts worldwide. From massive liquidations and ETF filings to Japan’s bank-backed stablecoin initiative and regulatory debates in the U.S., the crypto landscape continues to evolve at a rapid pace.

While volatility remains the name of the game, the ongoing integration of blockchain into mainstream finance and the growing institutional interest in tokenized assets suggest that the long-term outlook for digital assets remains resilient—albeit rocky in the near term.

Source: CryptoMarket

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

 Check out other news and articles on Google News

Disclaimer:

The articles published on hokanews are intended to provide up-to-date information on various topics, including cryptocurrency and technology news. The content on our site is not intended as an invitation to buy, sell, or invest in any assets. We encourage readers to conduct their own research and evaluation before making any investment or financial decisions.

hokanews is not responsible for any losses or damages that may arise from the use of information provided on this site. Investment decisions should be based on thorough research and advice from qualified financial advisors. Information on HokaNews may change without notice, and we do not guarantee the accuracy or completeness of the content published.