Why Is Crypto Down Today? – October 8, 2025

What Happened

Meanwhile, S&P Global, the company behind the S&P 500 and Dow Jones Industrial Average, has launched its first hybrid benchmark combining cryptocurrencies and crypto-linked equities. The S&P Digital Markets 50 Index will track 50 major components across the crypto economy, including 35 publicly traded companies and 15 cryptocurrencies.

“The key question for investors is not whether to participate, but when risk begins to outweigh reward. The peak of this speculative frenzy often marks the prelude to a structural market turning point. For BTC, watch resistance at $126k and support at $100k, and maintain disciplined risk management,” they stated.

Market Context

The crypto market is down today, with the cryptocurrency market capitalization falling by 2.2%, now standing at $4.26 trillion. 10 of the top 100 coins have dropped over the past 24 hours. At the same time, the total crypto trading volume is at $240 billion, higher than what we’ve been seeing over the past 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 1.8%, currently trading at $121,788.

Ethereum’s decrease is followed by Solana (SOL)’s 4.6% to the price of $220.

On the other hand, PancakeSwap (CAKE) is up 11%, now trading at $4.35. It’s the only double-digit increase.

Bitfinex analysts noted that, following typically weak Septembers, the market often rallies in October, “owing to its strong correlation with traditional finance, the broader liquidity cycle, and options market seasonality.”

That said, this strength typically spills over to the broader market, the altcoins add, “though altcoins often exhibit shorter life cycles, making long-term comparisons less consistent.”

“Among major assets, Ether has delivered an average Q4 gain of 22.29 percent since 2016. Together, these trends reinforce the structural tailwinds supporting a stronger close to the year, as cyclical liquidity, institutional inflows, and historical seasonality converge,” they concluded.

Additionally, Bitunix analysts argued that “the core logic of this bull cycle has shifted from ‘fundamentals-driven’ to ‘liquidity and sentiment-driven’,” adding that the market’s faith in AI and monetary easing is fueling excessive price growth.

Why It Matters

Notably, seasonality now supports a bullish outlook for BTC, they argue. Historically, the so-called “Uptoberˮ has delivered positive returns in nine of the past eleven years, with average gains of some 21%.

“While minor corrections remain possible, the broader context continues to favour a bullish fourth quarter. The setup remains favourable: a dovish [US] Federal Reserve, easing inflation, renewed ETF inflows, and stable on-chain support suggest the corrective phase is likely behind us.”

Details

Crypto Winners & Losers

Ethereum (ETH) is down by 4.7%, now changing hands at $4,455. This is the second-highest decrease on the list.

Binance Coin (BNB) is the only green coin in the category, having appreciated 4.7% to $1,306.

Dogecoin (DOGE) dropped the most in the same timeframe: 5.7% to $0.2462.

When it comes to the top 100 coins, 90 have seen drops, the highest of which is Plasma (XPL), with 15.7% to $0.8776.

World Liberty Financial (WLFI) is the only other coin with a double-digit drop: 10.3% to $0.1772.

‘Broader Context Continues to Favour a Bullish Q4’

Moreover, Q4 has consistently been Bitcoinʼs strongest quarter. Average returns for the quarter near 80%.

Levels & Events to Watch Next

At the time of writing on Wednesday morning, BTC trades at $121,788. Earlier in the day, the coin plunged from the intraday high of $125,108 to the low of $120,702.

It’s currently 3.5% away from its latest all-time high of $126,080.