After months of sideways trading, the crypto market experienced violent swings in both directions, erasing 110 billion dollars from its total capitalization in just 20 minutes following a sharp rally. In October 2025, a crash drove the global market cap down by approximately 500 billion dollars in a single session, with roughly 19 to 20 billion dollars in derivatives positions liquidated. August 2026 recovery added 113 billion dollars in a single day, with multi-day gains reaching between 170 and 291 billion dollars. Three factors fueled the rebound: policy shifts creating optimism that institutional capital quickly exploited, ETF inflows providing a steady bid underneath spot markets, and aggressive short-covering amplifying upward moves as traders were forced to buy back losing positions.
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