Crypto’s bullish structure remains intact despite a banking-sector-driven sell-off; market structure, on-chain metrics and expert analysis point to resilience, though short-term volatility and leveraged liquidations may delay a sustained recovery.
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Market structure still favors bulls despite the recent sell-off.
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Bitcoin fell ~5.6% to an intraday low near $104,853, dragging total market cap to $3.64 trillion (CoinGecko).
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Total leveraged liquidations hit about $1.09 billion, with BTC and ETH accounting for over 55% (CoinGlass).
crypto’s bullish structure: Despite a banking-driven sell-off, market structure and on-chain metrics show resilience—read COINOTAG’s concise analysis and next steps.
By COINOTAG — Published: 2025-10-17 — Updated: 2025-10-17
Is crypto’s bullish structure still intact after the sell-off?
Crypto’s bullish structure remains broadly intact even after the recent sell-off triggered by regional banking fears. Price action shows capitulation in leveraged positions and a short-term decline, but market structure, on-chain liquidation data and participation metrics suggest the down-move aligns with a corrective phase rather than a structural reversal.
How did regional banking fears trigger the crypto sell-off?
The sell-off was driven primarily by a flight to safety originating in traditional finance. Reports of loan book problems at regional banks — referenced in market commentary — prompted a sharp drop in bank equities, which spilled over into risk assets. Derek Lim, head of research at market-making firm Caladan, said: “As concerns spread through the financial sector, risk appetite weakened pretty severely across all markets. Naturally, crypto dropped as traders initiated a flight to safety.” Short-term positioning was fragile after prior volatility, amplifying liquidations.
Market snapshot and data
Over the 24-hour period under review, Bitcoin declined approximately 5.6% to an intraday low near $104,853, per CoinGecko price aggregation. The total cryptocurrency market capitalization fell about 5.9% to $3.64 trillion, the lowest level since July, also per CoinGecko. Ethereum posted a roughly 7.4% drop; major altcoins including XRP, Solana, Tron, Dogecoin and Cardano lost between 4%-9%. BNB experienced a notably larger drawdown of ~12.3%.
Liquidation trackers recorded approximately $1.09 billion in total liquidations, with Bitcoin and Ethereum traders making up over 55% of that sum (CoinGlass). On-chain signals and trading flows indicate many leveraged positions were stopped out during the rapid decline, intensifying short-term price moves.
Sentiment and prediction markets
Sentiment remains mixed. Prediction-market activity on Myriad (a product by Dastan) showed a prevailing optimism among users, with a reported 66% probability placed on Bitcoin closing October with more green candles than Ethereum—an indicator of some participant expectation for recovery. Conversely, a short-term market betting on whether Bitcoin’s next move will be to $120,000 or $100,000 shifted in favor of the lower target, rising to about 68% at one point, reflecting near-term bearish positioning.
Frequently Asked Questions
How significant were liquidations in the sell-off?
Liquidations reached roughly $1.09 billion across derivatives markets, with Bitcoin and Ethereum traders accounting for over 55% of that total (CoinGlass). High leverage and concentrated stop levels contributed to cascading sell orders and amplified price declines in the short term.
Will banking-sector concerns keep crypto prices lower?
Banking-sector fears can suppress risk appetite and trigger periodic sell-offs, but they do not necessarily change crypto’s long-term structural drivers. Short-term price pressure may persist while uncertainties remain, but market structure, liquidity metrics and on-chain demand will determine recovery timing.
Key Takeaways
- Sell-off driver: Regional banking concerns and equity market stress initiated a flight to safety that hit crypto markets.
- Data-backed impact: Bitcoin and major altcoins fell sharply; total liquidations approached $1.09 billion (CoinGlass), and market cap fell to $3.64 trillion (CoinGecko).
- Actionable insight: Traders should monitor leverage, funding rates and on-chain accumulation metrics; cautious re-entry or risk reduction is prudent until volatility subsides.
Conclusion
While the immediate market reaction reflected a risk-off impulse from traditional banking-sector concerns, the broader view points to a resilient, bullish market structure supported by on-chain metrics and selective optimism in prediction markets. Investors should balance the near-term risks from leveraged liquidations and macro uncertainty with longer-term indicators of demand and participation. COINOTAG will continue monitoring price action, liquidations and official data sources such as CoinGecko and CoinGlass for developments; readers are advised to follow updates and adjust risk exposure accordingly.
Sources: CoinGecko price and market-cap data; CoinGlass liquidation data; commentary from Derek Lim, head of research at Caladan; prediction market activity on Myriad by Dastan; reporting context originally noted in coverage by COINOTAG (source names presented as plain text).
