Bitcoin recently experienced dramatic price swings, dropping below $90,000 before rebounding. This volatility, triggered by substantial market downturns and investor behavior, has raised concerns for traders navigating the cryptocurrency sector. 1.1 trillion dollars in value disappeared from crypto markets in just a month, averaging daily losses of $27 billion. Bitcoin hit its seven-month low, resulting in massive liquidation events worth billions of dollars. Following the October 10th $20 billion event, market capitalization surprisingly remained around 10% higher than current levels. This decline has sparked anxiety among investors, as institutional investors pulled back significantly from mid to late October. High leverage intensifies crypto market volatility, leading to cascading effects on investor portfolios. The link between leverage and price movements is evident: a $19.2 billion liquidation followed a significant drop of $20,000 in Bitcoin’s value. Market experts warn that this high leverage can amplify market volatility, contributing to the rapid price fluctuations observed in recent weeks. 4 days witnessed over $1 billion in liquidations and daily figures as high as $500 million have become commonplace. Low trading volumes further exacerbate price swings. Fear and uncertainty are prevalent within the market, with the fear index reaching a level not seen since February 2025. This downturn is notable because it contrasts Bitcoin’s typical role as a safe haven asset in times of global financial turbulence. Gold has even outperformed Bitcoin following recent tariff announcements, while Ethereum has witnessed a decline exceeding 35%, mirroring broader tech stock trends. The relationship between these assets and market sentiment offers valuable insights into the current cryptocurrency landscape.