Why Is Crypto Down Today? – October 10, 2025

What Happened

According to Gadi Chait, Head of Investment at Xapo Bank, as we progress through Uptober, “it will be interesting to see if we make any meaningful move higher. Fed policy developments at the October 28-29 FOMC meeting may be a catalyst for a move that can either extend the rally, or trigger healthy consolidation.”

Lienkha continues: “This period of consolidation also suggests that investors are hesitant to commit new capital to high-volatility assets while equity valuations remain inflated. Many institutional participants are maintaining exposure but avoiding significant portfolio expansion. The market’s posture is one of patience rather than conviction.”

Investors are now looking to see if BTC will move above $124,000 again and towards $126,500, or it will drop below $119,500, which would open doors for the $117,000 level.

Market Context

The crypto market is down today, with the cryptocurrency market capitalization rising by 0.8%, now standing at $4.23 trillion. 75 of the top 100 coins have dropped over the past 24 hours. At the same time, the total crypto trading volume is at $206 billion, higher than the previous few days.

At the time of writing, 9 of the top 10 coins per market capitalization have seen their prices decrease over the past 24 hours.

Bitcoin (BTC) fell by 0.5%, currently trading at $121,142. It’s the second-smallest drop in the category.

When it comes to the top 100 coins, 75 have seen decreases, the highest of which is 17.3% by Mantle (MNT), now trading at $2.22.

Two coins saw double-digit increases: Zcash (ZEC) and Provenance Blockchain (HASH). The former appreciated 32.7%, now trading at $238.81, while the latter rose by 20.6% to $0.04061.

Sean Dawson, head of research at the onchain options platform Derive.xyz, argues that “Bitcoin volatility is poised for a breakout.”

He explained that implied volatilities across 14-, 30-, and 90-day expiries have surged to their highest levels in 30 days. The spike follows the market pricing in a 25 basis point rate cut by the US Federal Reserve expected later this month.

Term structure of BTC volatility with box plots overlaid to highlight historical ranges:

Additionally, Ruslan Lienkha, chief of markets at YouHodler, commented that “the lack of new catalysts is one of the key reasons for crypto’s current stagnation,” he says. “Earlier cycles were fueled by innovations such as the rise of DeFi and NFTs, as well as institutional adoption, which attracted new capital inflows and speculative enthusiasm. At present, the market lacks comparable internal drivers. Regulatory uncertainties, subdued retail interest, and a lack of major new technological narratives have contributed to the muted price action.”

At the time of writing on Friday morning, BTC trades at $121,142. Earlier in the day, the price dropped from the intraday high of $123,548 to the low of $119,967, before recovering to the current price.

Ethereum is currently trading at $4,332. It initially dropped from the day’s high of $4,434 to $4,331. Then, after a brief jump, the price plummeted to the intraday low of $4,285. It has recovered since,

Why It Matters

This suggests “increased anticipation of big moves ahead.”

Furthermore, there is a dense band of short positions at risk of liquidation just above the $121,600 level. “A modest push upward could trigger a cascade of liquidations and propel BTC back toward $125,000 and beyond,” Dawson says. “On Derive, traders are positioning for a significant upside move,” he adds.

Details

Crypto Winners & Losers

Ethereum (ETH) is down by 1.9%, now changing hands at $4,332.

The smallest decrease on the list is XRP’s 0.3% to $2.81.

At the same time, the only gainer in the category is Dogecoin (DOGE), which appreciated 0.5% to $0.2481.

Aster (ASTER) also recorded a double-digit drop: 14% to $1.56.

‘Increased Anticipation Of Big Moves Ahead’

Levels & Events to Watch Next

It’s down 3.9% from its all-time high of $126,080. At the same time, it’s up 1% in a week and 8.3% in a month.