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October 21, 2025Finbold logoFinbold

Why is the crypto market crashing today? $110 billion erased in hours

The cryptocurrency market faced a brutal sell-off on October 21, with over $110 billion in market value wiped out in a matter of ￰0￱ total market cap plunged from around $3.75 trillion to $3.64 trillion, as panic selling swept across both Bitcoin ( BTC ) and major ￰1￱ market cap price chart.) tumbled 4.67% to $3,860, BNB (BNB) shed 5.13% to $1,067, while Solana ( SOL ) slumped nearly 5% to $184. XRP fell 2.71% to $2.40, extending losses after recent ETF speculation ￰2￱ is the crypto market crashing? The sell-off comes against the backdrop of the ongoing ￰3￱ shutdown, now in its third week, which has paralyzed the ￰4￱ more than 90 crypto ETF applications, including Solana and XRP funds, frozen in limbo, institutional inflows have dried ￰5￱ data shows Bitcoin ETF inflows fell to $146.18 billion, down sharply from $159.48 billion last week, eroding one of the asset’s strongest demand drivers.

On-chain signals also point to ￰6￱ data highlights that long-term Bitcoin holders wallets holding BTC for over a year, reduced their supply by 0.8% in October, offsetting institutional ￰7￱ dynamic has created a supply overhang, as veteran investors lock in profits while ETF demand alone fails to absorb the selling ￰8￱ Bitcoin’s ability to cling to $107,000 underscores ongoing institutional dip-buying at lower levels. What’s next for Bitcoin? The key battle is around $107,00 support. A decisive break lower could see Bitcoin tumble to $105,000, sparking broader deleveraging across ￰9￱ are closely monitoring two catalysts.

One, a ￰10￱ shutdown resolution, a restart of SEC operations would revive ETF approval timelines. Second, whether institutional demand returns strongly enough to absorb profit-taking by long-term ￰11￱ now, the market remains on edge, with the Fear and Greed Index at 33 (Fear), reflecting investor caution as macro and regulatory headwinds collide with fragile market sentiment.

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