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This is among the fastest-moving crypto bear markets on record: On October 6, the total cryptocurrency market capitalization reached an all-time high of $4.27 trillion. As of today, the market cap has fallen back below $3 trillion — a decline of $1.3 trillion in just 45 days.

A United States congressman just updated his PFP to a Pudgy Penguin. Tell me, what part of the cycle are we in when lawmakers start flexing NFTs?

Elon Musk says work could become "optional" in 10-20 years Crypto bros:

Kalshi traders are wagering that #Bitcoin could fall to $74,000.

🚫 **The internet worldwide went down due to a major outage at **[Cloudflare](http://cloudflarestatus.com/) — a company that provides a significant part of the global internet infrastructure (CDN, DNS, traffic protection and routing). Social networks, online games, and various services are massively unavailable — from **Twitter **and **Spotify **to **OpenAI **and **AWS**. I guess crypto went down so much it took the internet down too 🤣

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Welcome back diamond hands!

BREAKING: Bitcoin has dropped below $93,000 for the first time since April 28th. The isolated crypto selloff has now wiped out -$1.2 TRILLION in market cap over the past 5 weeks. Liquidations continue to climb.

Here’s the bigger picture: global M2 money supply has reached a record $137 trillion. Japan is preparing $110B+ in stimulus, and $2,000 tariff “dividends” are on the way. This entire downturn is more of a “growing pain” than a collapse for crypto. — Analysis by Kobeissi Letter Jump to the [first post](https://t.me/XEmpireComboDaily1/11235) to read the full thread from the [start](https://t.me/XEmpireComboDaily1/11235).

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These dynamics are echoing far beyond crypto itself. The macro landscape is shifting, and stocks, commodities, bonds, and crypto all remain investable.

Zooming out, crypto appears to be in a “structural” bear market. Crypto’s fundamental value has strengthened, but the market mechanics have shifted. In any efficient market, the distortions eventually clear. The bottom looks close.

The pattern is even more dramatic outside Bitcoin. Ether, $ETH, is now officially down -8.5% year-to-date. Since October 6th, it has dropped a massive -35%. This goes past bear market territory, even as virtually ALL risky assets have rallied.

Want another angle? Look at Bitcoin versus Gold since the October 10th liquidation. For more than a year, Bitcoin and Gold moved closely together as safe haven assets. Since early October, Gold has outperformed Bitcoin by 25 percentage points.

This also explains the rapid mood swings in sentiment. The Crypto Fear & Greed Index has now plunged to 10, “Extreme Fear.” That matches the February 2025 bottom, even though Bitcoin is still up +25% from the April low. Leverage is turbocharging sentiment volatility.

In just the last 16 days, we’ve already seen three sessions with over $1 billion in liquidations. Daily wipeouts of $500+ million have essentially become routine. In periods of thin volume, these pressures create violent price swings—up and down.

That’s why sudden drops in crypto lead directly to liquidation spikes. On October 10th, the -$19.2 billion liquidation wave produced the first-ever $20,000 BTC daily candlestick. Extreme leverage has created a market that reacts like it’s made of glass.

Leverage in crypto works differently. Speculators often take positions levered 20x, 50x, or even 100x. At 100x leverage, a simple 2% move is enough to wipe out the entire position. When millions of traders are levered, these tiny swings trigger cascading liquidations.

The downturn also appears highly structural and mechanical. It kicked off with institutional outflows in mid-to-late October. In the first week of November alone, crypto funds recorded -$1.2 billion in outflows. The issue is that these outflows collided with extremely high leverage.

This decline has been unusual for one core reason: There haven’t been any major bearish developments on the fundamental side of crypto. Just days ago, President Trump said making America “number one in crypto” is his top priority. Yet Bitcoin has fallen -25% in a single month.

What is happening in crypto? Over the past 41 days, crypto has wiped out -$1.1 trillion in market cap, averaging -$27 billion per day. Total crypto market cap now sits roughly ~10% BELOW the levels seen during the record -$19 billion liquidation on October 10th. This is a structural move. Here’s the breakdown.

Truly unbelievable