The cryptocurrency market has experienced a dramatic downturn of 20%, with fears of contagion in the decentralized finance sector driving panic. This decline follows a series of DeFi hacks, influential whale sell-offs, and heightened global macro uncertainty. While analysts expect the market to rebound as stability returns, the current crisis leaves investors wary. The drop marks the first time since 2018 that Bitcoin has closed October in the red, with major players like Stream Finance and Balancer experiencing significant losses. These events have sparked a widespread sense of instability within the DeFi ecosystem, exacerbating the market’s vulnerability. Experts warn of a potential extended correction phase due to high leverage levels and increased risk-off sentiment. Technical indicators further suggest a price peak, with the RSI dropping below 50 and the MACD turning negative. While the situation is volatile, analysts predict a healthier recovery once liquidity stabilizes and global macroeconomic conditions improve.