The ongoing impact of 'Red October' continues to haunt Bitcoin (BTC) and other cryptocurrencies as BTC price briefly plunged below $100,000 for the first time since June 2025, erasing roughly 17% of gains since hitting a high of over $126,000 four weeks ago. The crypto market slid sharply on Tuesday as Bitcoin dropped toward the $101,000 mark, dipping below the psychological $100K support level earlier before tracing back to $103,052.88. On Thursday, around 2 pm India time, BTC recovered a bit, trading around 1.67% up on a 24-hour basis, even though analysts predict further decline as the impact of October's major crash continues to affect sentiment, and subsequent hawkish commentary by Fed's Chair Jerome Powell, which weakened spot ETFs demand.

Similarly, Ethereum (ETH) also dropped below $3,300 on Tuesday, erasing its 2025 gains. The second-largest crypto coin by market had hit its all-time high of $4,946 in August, falling around 31% since then. Since October 26, 2025, alone, when BTC hit its all-time high, ETH has also fallen 27.94%.

"Bitcoin has shown unusual weakness recently, falling 9% over the past week to its lowest levels since June 23, 2025, and recording its worst 30-day performance versus the Nasdaq since July 2024. This underperformance stems from constrained liquidity and widespread risk aversion following a post-October 10 deleveraging event. Fear-driven market sentiment, combined with heavy selling from long-term holders, has compounded the weakness as buyers hesitate amid perceived elevated risk," Vetle Lunde, head of research, Norway-based digital asset research and advisory firm K33, said in a new report.

As per the Coinglass data, 154,434 traders liquidated their positions, with the total liquidations (forced position closures) recorded at $307.70 million, and the largest single liquidation order being on HTX-ETH-USDT at $4.67 million. ETH liquidations stood at the highest at $87.11 million, followed by BTC at $63.39 million. As the biggest cryptocurrencies record gains, other major tokens are also experiencing gains, with XRP (XRP) rising 4.5% to $2.32 (but down 22.56% in the past month), Solana (SOL) increasing 2.25% to $159.24 (down 31.36% in the past month), and Dogecoin (DOGE) surging 0.24% to $0.1631 (down 37.5% in the past month).

A commentary by CoinSwitch Markets Desk reads: "The pull-back stemmed from a trio of pressures: rising U.S. Treasury yields, squeezing liquidity, massive long-position liquidations, and macro warnings from major banks raising fear about a broader risk-asset sell-off. On-chain flows signalled large-holder selling and heavy redemptions in crypto ETFs. traders may treat this as a corrective phase."

Avinash Shekhar, Co-Founder & CEO, Pi42, says the latest bounce in the crypto market suggests that bullish momentum remains intact. “The recent dip and rapid rebound of Bitcoin below $100K, followed by a revival in select altcoins such as ASTER, shows that the market continues to be driven by sentiment and quick reactions. At Pi42, we see this phase as a recalibration rather than a structural breakdown. The sharp $400 billion contraction in crypto market cap within two days was significant, yet the bounce suggests that bullish momentum remains intact."

Edul Patel, CEO of Mudrex, echoes the same sentiments, saying that Bitcoin, along with the broader crypto market, is extending its recovery. "Investors are now eyeing key triggers such as the U.S. crypto bill discussions, which could act as a major catalyst for the next rally. At the same time, the U.S. jobless claims data scheduled for later today could also influence the market momentum. Currently trading around $103,300, BTC's immediate resistance stands at $105,700, with a strong base forming at the $100,000 zone."

Vikas Gupta, Country Manager, Bybit India, said the sharp fall in Bitcoin from around $121,000 to nearly $100,000, accompanied by the declines in Ethereum and Solana, revealed how swiftly sentiment can shift, amid broader global uncertainty. "Beyond the price movements, the event tested the strength, stability, and transparency of trading platforms across the industry. Exchanges that maintained liquidity, robust infrastructure, and effective risk controls were able to navigate the volatility more effectively, reinforcing the importance of strong operational frameworks. While the scale of losses was significant, this correction also acts as a much-needed reset. With excessive leverage flushed out, the market may now be better positioned for more sustainable growth."

Notably, ETF inflows returned on November 5 after five straight outflow sessions, as Bitcoin ETFs saw $238.5 million inflows and Ethereum recorded $28.1 million. "However, both BTC and ETH remain below key moving averages, keeping the near-term outlook neutral to bearish. A breakout above $105k for BTC and $3.6k for ETH would be needed to confirm a stronger recovery," says Riya Sehgal, research analyst, Delta Exchange.

Meanwhile, digital assets and data centre infrastructure company Galaxy Digital, in its latest note, has trimmed its 2025-end forecast for BTC from $185,000 to $120,000, saying the crypto has entered "maturity era", dominated by institutional money and reduced volatility.