The cryptocurrency market faced a sharp downturn on September 22, 2025, with the global market capitalization declining by 3.8% to $3.97 trillion, while trading volume surged to $190.3 billion. This sell-off was widespread, with nine of the top ten cryptocurrencies recording losses over the past 24 hours.
Bitcoin (BTC) fell 2.7% to approximately $112,500, though it remained up 2% weekly, while Ethereum (ETH) dropped 6.7% to around $4,166, marking one of the steepest declines. Dogecoin (DOGE) led the losses with a 10.7% plunge to $0.238, while BNB showed resilience with an 11.1% weekly gain despite a 3.9% daily drop.
The downturn was exacerbated by a liquidation event where over $1 billion in Bitcoin long positions were wiped out in just 20 minutes, affecting over 400,000 traders. Macro-economic triggers included Federal Reserve ambiguity, with Chair Jerome Powell dampening hopes for aggressive easing, and political risks from President Donald Trump's proposed $100,000 H-1B visa fee, which threatened to heighten trade tensions.
Despite the negativity, US Bitcoin spot ETFs saw $222.62 million in net inflows on September 19, led by BlackRock's IBIT with $246.11 million, while Ethereum ETFs gained $47.75 million. Market sentiment held neutral with the Fear and Greed Index at 47. Regulatory concerns also emerged as China urged brokerages to pause RWA tokenization in Hong Kong.
Traders are watching key levels, with Bitcoin support at $111,000 and resistance near $119,000, while Ethereum faces tests at $4,100. Historical trends hint at a potential "Uptober" rebound, as Bitcoin has closed green in 10 of the past 12 Octobers.