Crypto market cap swings $500B before $110B drawdown breaks 110-day freeze

After an extended period of range-bound trading, the total crypto market cap experienced rapid swings worth hundreds of billions of dollars, including a roughly $500B surge followed by a $110B drawdown. During the October 2025 crash, the market cap instead plunged by approximately $500B in a single session, triggering about $19 billion to $20 billion in derivatives liquidations, among the largest wipeout events in crypto history. Bitcoin’s market cap lost around $110B during certain weekly and daily declines. The October selloff coincided with macroeconomic developments, including tariff announcements, highlighting crypto’s correlation with traditional risk assets. That pattern continued during the mid-2026 corrections, including a $110B single-day loss on June 2, 2026, amid broader market selling unrelated to blockchain technology or protocol upgrades. In August 2026, the total market cap added $113B in one day, while multi-day gains reached between $170B and $291B. Policy shifts, ETF inflows and short-covering (buying back bearish positions) appeared to support the rebound. The October liquidations represented the collective cost for traders who believed they had timed the market correctly.

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