Crypto market crash: red october turns into black november

Reasons for the crypto market crash and the current situation

The crypto market crash began in October 2025, when US President Donald Trump announced the introduction of new tariffs on imported goods from China at the level of 100%.

After Trump's post was published, the quotations of stock indices began to collapse, and the crypto market crash followed. Within just 24 hours, the crypto market lost more than $450 billion in capitalization, and the total amount of futures position liquidations exceeded $19 billion. Experts called this crypto market crash the largest in history, also dubbing it "Black Saturday".

Even though Trump postponed the introduction of tariffs on China, the crypto market crash continued, and the total capitalization of digital assets fell by almost 14% to $3.37 trillion, the lowest since May 2025.

The price of the leading cryptocurrency Bitcoin (BTC) has dropped by almost a quarter over the past month, from $124,000 to $99,900. Over the same period, Bitcoin lost more than $400 billion in market capitalization. Analysts note that Bitcoin became unprofitable for the first time in 6 years in October 2025. Experts also predict a higher probability of a crypto market crash in November, even though, in recent years, this month has traditionally been profitable for cryptocurrencies.

The leaders of the crypto market crash over the month were the following assets from the top 100 cryptocurrencies:

Story (IP): -61%;
SPX6900 (SPX): -60%;
DoubleZero (2Z): -59%;
Pudgy Penguins (PENGU): -55%;
Artificial Superintelligence Alliance (FET): -54%.

Analysts recorded the most rapid crypto market crash across sectors such as gaming tokens (GameFi), second-layer solutions (L2), memecoins, and mid- and small-cap tokens (Mid & Small Caps).

Wintermute experts link the crypto market crash to deteriorating financial flows, rather than fundamental indicators. According to them, investor liquidity has flowed out of cryptocurrencies into more attractive areas such as artificial intelligence (AI), stocks, and prediction markets. According to DeFi Llama, the total value locked (TVL) of the prediction markets in the crypto segment has grown by more than 40% and reached $278 million.

According to analysts, the crypto market crash was aggravated by liquidations of futures positions, which reached billions of dollars, against the backdrop of reduced buyer activity.

The decentralized finance (DeFi) market is also showing negative dynamics. As of November 2025, the total TVL of the DeFi market has dropped more than 32% over the past month, from $172 billion to $130 billion.

TVL decreased the most in the DeFi protocols Veda (-41%), Ethena (-40%), and Jito (-33%). The total value locked across other major DeFi protocols, such as Aave, Lido, Uniswap, and JustLend, fell by more than 20%.

Experts believe that a combination of macroeconomic and market factors drives the current crypto market crash. The main factor is uncertainty about the future monetary policy of the US Federal Reserve (Fed).

According to analysts, this reduces investor appetite for high-risk assets such as cryptocurrencies. According to CME FedWatch, the probability of a December Fed rate cut is estimated at only 60–70%, which is low.

However, despite the crypto market crash, some altcoins have shown significant growth over the past month. The leaders among them were:

The privacy cryptocurrency segment, such as ZEC, DASH, and Monero (XMR), in general, shows the opposite market dynamics amid renewed investor interest in this category of assets. Some analysts consider this a speculative movement, while others note that privacy is becoming not an "advanced setting" but a basic user need.

Also, unlike the crypto market crash, the real-world assets (RWA) sector is seeing growth, with TVL increasing by almost 6% over the last month to $17.8 billion.

Will the crypto market crash continue?

According to analysts' forecasts, both recovery and further crypto market crashes are possible. The prospects for Bitcoin and other cryptocurrencies depend on market trends driven by both macroeconomic factors and institutional interest.

Bitwise CEO Matt Hougan believes that "buyers are still hungry" and that Bitcoin will reach $125,000 or possibly $130,000 by the end of 2025. However, earlier Bitwise predicted that the price of the leading cryptocurrency could reach $200,000 by the end of the year.

In any case, the Bitwise forecast remains bullish. Hougan notes that there is still an ongoing inflow into spot Bitcoin funds (ETFs). This indicates that long-term capital continues to flow into the market, reflecting sustained investor optimism.

Analysts also note that the current cycle is longer than the previous ones, so crypto market growth remains possible until the end of 2025. Fundstrat co-founder Tom Lee believes that significant digital assets still have a chance to resume the rally, despite the local crypto market crash.