Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Regulatory Approval Fails to Halt Crypto's $200 Billion Plunge

Regulatory Approval Fails to Halt Crypto's $200 Billion Plunge

Bitget-RWA2025/09/25 18:02
By:Coin World

- Cryptocurrencies lost $200B in October 2025 as Bitcoin fell below $112,000 amid regulatory uncertainty and derivatives liquidations. - Derivatives crashes erased billions, with top 50 cryptos recording double-digit losses and Ethereum leading the decline. - SEC's crypto ETF approval failed to offset bearish sentiment as macroeconomic risks and dollar strength deepened the selloff. - Industry consolidation (Naver Financial's Upbit acquisition) and Google's crypto-linked AI deal emerged amid ongoing market

Regulatory Approval Fails to Halt Crypto's $200 Billion Plunge image 0

In early October 2025, the cryptocurrency market saw a steep decline, wiping out $200 billion from its global market value as

(BTC) and other leading altcoins tumbled due to increased volatility and ongoing regulatory concerns. After reaching a high of $124,000 at the start of 2025, Bitcoin fell below $112,000 in just a few days, sparking a chain reaction throughout the crypto industry. The Federal Reserve’s 25-basis-point rate reduction in September initially boosted hopes for riskier assets, but this optimism faded as traders viewed the move as a sign of continued policy uncertainty. “Bitcoin is now undergoing a correction to relieve profit-taking pressure and cut down on short-term leverage,” commented Linh Tran, a market analyst at XS.com Forbes Digital Assets [ 1 ].

The downturn intensified following a collapse in the derivatives market, where forced liquidations wiped out billions. All of the top 50 cryptocurrencies suffered double-digit losses within a matter of hours, with

(ETH) and among the hardest hit. Blockchain data showed a spike in leveraged long positions, which experts warned were increasingly at risk as market liquidity dried up. Markus Thielen from 10x Research pointed out that “on-chain indicators reveal declining trading activity,” raising doubts about how long the consolidation might last Forbes Digital Assets [ 1 ]. The Altseason Index, which tracks altcoin momentum, plunged from 100 to 67, highlighting the sector’s vulnerability Coinpedia.org [ 4 ].

Regulatory shifts were also a factor. The U.S. Securities and Exchange Commission (SEC) gave the green light to broad listing rules for crypto ETFs, a move some analysts called a “floodgate” for institutional involvement. Still, this regulatory progress coincided with a market slump, as investors prioritized short-term risks over long-term changes. Steve Feinour of Stradley Ronon remarked that the new rules “significantly lower the hurdles for launching crypto ETFs,” especially for assets like Ethereum and

Forbes Digital Assets [ 1 ]. Nevertheless, inflows into ETFs have slowed, with investments in spot Bitcoin ETFs dropping 23% compared to the previous week Coinpedia.org [ 4 ].

Broader economic pressures added to the selloff. Mixed U.S. inflation figures and worries about persistently high interest rates curbed risk-taking, while geopolitical tensions in major markets made investors more cautious. The strong U.S. dollar and a wave of expiring Bitcoin options contributed to a bearish mood. On September 22 alone, liquidations totaled over $631 million, with Ethereum making up $182 million of that sum Invezz [ 5 ]. Analysts cautioned that Bitcoin’s inability to surpass $117,000 could indicate a looming “death spiral,” further supported by a rising wedge pattern on weekly charts Invezz [ 5 ].

Opinions among traders are split regarding what comes next. Some see the pullback as a healthy pause before another rally, while others warn of more downside risk. For example, the Ethereum options market reflected a shift, with call options regaining value as traders positioned for a possible recovery Coinpedia.org [ 4 ]. Binance founder Changpeng Zhao (CZ) suggested the market has yet to enter a “true bull market,” though his remarks were met with doubt as Bitcoin struggled to break through key resistance levels Coinpedia.org [ 4 ].

The wider financial industry is also adjusting. Naver Financial’s purchase of Upbit, South Korea’s largest crypto exchange, demonstrates the increasing overlap between digital assets and traditional finance. At the same time, Google’s $3 billion investment in AI infrastructure with Fluidstack—accompanied by a 5.4% equity stake in Cipher Mining—shows renewed interest in crypto-related high-performance computing. However, these positive developments have not yet reversed the prevailing bearish mood.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Exchanges Call on SEC: Deny Exemptions to Maintain Fairness in the Market

- WFE warns SEC against broad crypto exemptions for tokenized stocks, citing risks to investor protections and market integrity. - Tokenized stocks lack dividend rights, voting access, and custody frameworks, creating "mimicked products" with weaker safeguards. - SEC's sandbox-style exemptions risk regulatory arbitrage, allowing crypto platforms to bypass rules enforced on traditional exchanges. - Global bodies like IOSCO warn tokenization amplifies data integrity and custody risks, urging unified standard

Bitget-RWA2025/11/30 23:04
Exchanges Call on SEC: Deny Exemptions to Maintain Fairness in the Market

Decentralized AI Network Cocoon Takes on Centralized Titans with a Privacy-Centric Approach

- Telegram founder Pavel Durov launched Cocoon, a TON-based decentralized AI network enabling GPU owners to earn cryptocurrency by processing private AI requests. - The platform challenges centralized providers like Amazon and Microsoft by using Trusted Execution Environments (TEEs) to ensure secure, verifiable model execution with user data privacy. - Cocoon connects GPU providers with developers for confidential tasks, reducing reliance on costly intermediaries while aligning with ethical AI principles t

Bitget-RWA2025/11/30 23:04
Decentralized AI Network Cocoon Takes on Centralized Titans with a Privacy-Centric Approach

Ethereum News Update: Fusaka Upgrade Signals New Era of Unified Scaling for Ethereum

- Ethereum's Fusaka upgrade (Dec 3, 2025) introduces PeerDAS and BPO forks to enhance scalability via reduced data verification costs and incremental rollup capacity expansion. - Gas limit raised to 60M through "Pump The Gas" initiative lowers fees and congestion, while L2 data costs could drop 40-60% to boost developer adoption. - EIP-7917/7951 improves security and UX with deterministic finality and P-256 signatures, aligning Ethereum with fintech standards while reducing node storage demands. - Upgrade

Bitget-RWA2025/11/30 22:44
Ethereum News Update: Fusaka Upgrade Signals New Era of Unified Scaling for Ethereum

UAE's regulatory initiatives set the stage for a surge in institutional DeFi adoption

- DWF Labs commits $75M to DeFi projects enhancing institutional-grade infrastructure across Ethereum , BNB Chain, and Solana . - UAE's new Central Bank Law mandates licensing for DeFi protocols, balancing innovation with regulatory oversight and consumer protection. - Doma Protocol and ORA introduce liquid domain trading and cash-flow-driven models, expanding DeFi's functional scope beyond speculative tokenomics. - Institutional adoption faces hurdles including regulatory uncertainty, smart contract risks

Bitget-RWA2025/11/30 22:26
UAE's regulatory initiatives set the stage for a surge in institutional DeFi adoption