The cryptocurrency market experienced another selloff on Wednesday, October 22, as the total market capitalization dropped more than $84 billion. The decline brought the total crypto market cap down to $3.61 trillion at press time.
Bitcoin fell to $108,057 after briefly approaching $114,000 earlier in the trading session. The leading cryptocurrency now sits at a crucial support level around $108,000.
Ethereum traded near $3,870, marking a decline of roughly 4-6% over the past week. Most major altcoins remained flat or posted mild losses during the same period.
The market had briefly rallied during intraday trading, with the total cap rising by $103 billion before reversing course. This sharp swing highlights the current fragility of investor sentiment across digital assets.
The selloff comes as fallout continues from October’s historic flash crash event. That event erased $370 billion from crypto valuations in just a few hours following President Trump’s announcement of escalated tariffs on Chinese imports.
The October crash triggered the largest single-day liquidation wave in cryptocurrency history. Over $19 billion in leveraged positions were wiped out during the event.
Trading volumes and market liquidity have struggled to recover since the massive liquidation. Traders have adopted a more cautious approach to the market.
Short sellers have taken advantage of Bitcoin’s recent weakness. Some large traders have reportedly placed short bets exceeding $200 million in total exposure.
Bitcoin has repeatedly failed to break through resistance at the $114,000 level. These failed attempts have strengthened short-term bearish momentum in the market.
If Bitcoin’s decline continues, analysts expect the price could drop toward $105,585. A break below the $105,000 support level could trigger additional panic selling.
The total crypto market cap faces support near $3.56 trillion. A drop to this level would confirm continued bearish pressure across the sector.
Renewed geopolitical tensions between Washington and Beijing are weighing on risk asset sentiment. Outflows from cryptocurrency exchange-traded funds have continued in recent sessions.
Credit concerns in global markets and uncertainty around inflation data are contributing to risk-off behavior. Traders are awaiting the upcoming U.S. Consumer Price Index report for direction.
British Columbia permanently banned new crypto mining connections to its power grid to protect electricity resources. The decision ends prospects for new mining projects in the province.
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