Crypto Markets Recover as Black Monday Fears Rise Across Global Markets

Table of Contents

• You might want to know


• Crypto Markets, Black Monday Risks, and Industry Developments


• Key Insights Table


• Afterwards...

You might want to know

• Does the anniversary of the 1987 stock-market crash mean a similar event is imminent for crypto?


• What do recent token prices, fund flows, and industry developments reveal about the market’s current condition?

Crypto Markets, Black Monday Risks, and Industry Developments

Thirty-nine years ago, the Dow Jones Industrial Average fell 22.6% in one trading session, an event that became known as “Black Monday.” The sudden collapse remains a landmark in financial history. Its anniversary has revived concern that markets could face another sharp decline, including in digital assets. Yet the historical comparison needs care: a date associated with a past crash does not, by itself, establish that another crash is about to happen.

Bitcoin entered this period under pressure, but it had held up better than many other large crypto assets. At the time of the market overview, Bitcoin was around $82,161, down 1.4% over the week and up about 1% over the preceding 30 days. A separate market snapshot showed Bitcoin at $81,942, down 0.71% over 24 hours, with a 24-hour high of $83,035 and a low of $80,672. Reported trading volume was $1.2B. These figures reflect different snapshots in the source, rather than a single fixed price.

The broader market was weaker. Ethereum declined 5.3% to $2,415, while BNB fell 3.3%, Solana 6.2%, XRP 7.2%, Dogecoin 9.4%, Hyperliquid 8.6%, and Zcash 13.2%. Across the major assets other than Bitcoin, the average weekly decline was 7.5%—about five times Bitcoin’s loss. This divergence suggests that investors were reducing exposure more aggressively in many assets outside the largest cryptocurrency.

Losses among smaller tokens were steeper still. Starknet fell 45% for the week; LayerZero declined 24%; Pump.fun dropped 22%; Ethena and Fetch each lost 20%; Midnight fell 19%; Canton and Jupiter each declined 18%; Filecoin lost 17%; and Raydium fell 18%. The twelve largest weekly losers averaged losses exceeding 20%. The scale of these declines points to considerable strain in the market’s riskier segments, even as Bitcoin remained comparatively resilient.

Exchange-traded funds also recorded withdrawals. Spot Bitcoin ETFs had $228.4 million in net outflows during the week, while Ethereum ETFs saw $320.1 million in net outflows, for a combined $548.5 million. In October, the two groups together had lost $1.86 billion. Ethereum’s fund position was described as particularly vulnerable: $14.5 billion in net assets compared with $12.9 billion in cumulative inflows leaves about $1.6 billion of value above the cumulative amount invested. This is a measure of the funds’ current cushion, not a prediction that it will necessarily disappear.

The fear of another Black Monday also raises a question about how market structure has changed. In 1987, automated selling contributed to a feedback loop in which selling triggered further selling. Equity markets have since introduced circuit breakers intended to pause trading during extreme moves. The Kospi in South Korea activated one such mechanism last week. Crypto markets, by contrast, trade continuously, including weekends, and do not have a comparable market-wide circuit breaker.

Continuous trading can allow prices to adjust at any hour, but it can also make sudden liquidation cascades harder to interrupt. The source points to October 10, 2025, as a recent example in which liquidations caused the market to reprice within hours. Still, the conditions described in the current market were different: a gradual decline, comparatively orderly exits, Bitcoin holding up better than smaller assets, and a modest return of buying over the weekend.

Widespread anticipation of a crash is not proof that a crash will occur. When investors are already alert to a possible selloff and have cash ready, their behavior may differ from the surprise-driven conditions that intensify a sudden decline. This does not eliminate risk, but it is a reason to distinguish public anxiety from evidence of an imminent market collapse. The market commentary therefore judged a Black Monday-style event unlikely, at least for that day, while acknowledging that financial markets remain uncertain.

Developments across crypto and traditional markets

In the subsequent market update, major cryptocurrencies were broadly flat after recovering from a Sunday selloff. Bitcoin was around $82.4k, Ethereum around $2,422, Solana was up 1% at $105, Hyperliquid was steady at $79, and Zcash was up 1% at $1,146. Among altcoins, Raydium and Arbitrum each gained 8%, while VVV and PEPE rose 6% each.

Other markets moved as well. Oil rose 4% to $101 and gold gained 0.4% to $4,200. Stock futures were described as positive following news of an upcoming peace summit involving Putin, although the reported index figures were mixed: the Dow was down 0.1% and the Nasdaq was up 1.1%.

Major financial institutions also discussed tokenization as a potential area of growth. Goldman Sachs, Wells Fargo, and Morgan Stanley described tokenization during their third-quarter earnings calls as an opportunity rather than a threat. Goldman Sachs CEO David Solomon compared the development with the earlier shift to electronic stock trading. Wells Fargo said its tokenized-deposit payment system was already in production. These comments show that established financial firms are exploring blockchain-based representations of financial assets and payment systems, while the practical and regulatory implications continue to develop.

At the same time, nine companies, including Broadcom, Verizon, and UnitedHealth, objected to their shares being traded through the OKX-ICE tokenized stock venue. The dispute provides an early test of the SEC’s five-year Innovation Exemption. It highlights a central issue for tokenized securities: new trading arrangements may offer different forms of access, but they must also address issuers’ rights, investor protections, and regulatory responsibilities.

Political and legal developments formed another part of the market picture. Crypto super PAC Fairshake had spent about $46.66 million in an effort to keep Sherrod Brown out of the Senate. Its activity included a $5.2 million media buy and a second $1.95 million buy that month in Ohio. Separately, a federal judge declined to allow the CFTC to withdraw from its own $5 million settlement with Gemini. The agency and exchange had jointly asked to vacate the 2025 consent order. The judge ruled that changing enforcement priorities and allegations of internal misconduct were not sufficient grounds to undo an agreement Gemini had voluntarily signed three weeks before trial.

Circle planned to expand into roughly 40 emerging and developing countries. CEO Jeremy Allaire said at IMF and World Bank meetings in Bangkok that organic demand in Southeast Asia, Latin America, Africa, and the Middle East was helping stablecoins move beyond the early-adopter phase. The company’s plans reflect a broader question facing digital payments: whether stablecoins can meet local needs reliably while operating within evolving legal and financial frameworks.

Nine organizations also launched the Quantum Alliance, an open standards body modeled on the IETF. Its establishment reflects an effort to develop shared standards in quantum-related fields. Open standards can help different organizations coordinate, although the technical scope and practical outcomes of the alliance will depend on its future work.

Corporate treasuries, tokens, and NFTs

Fund flows remained a major indicator for crypto investors: Bitcoin ETFs recorded $228M in net outflows for the week, and ETH ETFs lost $320M. These rounded figures are consistent with the more precise amounts reported elsewhere in the market account—$228.4 million and $320.1 million, respectively—while representing the same overall direction.

Meme coins showed mixed performance. DOGE and SHIB were unchanged; PEPE rose 5%, PENGU gained 1%, TRUMP fell 2%, SPX declined 4%, and BONK lost 1%. Several Robinhood chain leaders dropped over the weekend: Pons fell 20% to $176M, AI declined 30% to $80M, and Cashcat lost 10% to $105M. Among reported gainers, Orbio rose 10%, Boner gained 13%, and Torch climbed 78%.

Solana-related tokens also produced notable moves. Dacity rose 150%, Weft gained 550%, and Pierre increased 29x. Such large percentage changes can occur in thinly traded or highly volatile assets and should not be treated as representative of the broader market. Price swings may be amplified by limited liquidity, concentrated ownership, or rapid changes in speculative demand.

Onchain protocol revenue was led by Papertrade, which recorded $30.56M for the week. Hyperliquid followed at $16.4M, with Pump.fun at $14.26M. BNB Chain also conducted its 37th quarterly Auto-Burn, destroying about 1.646 million BNB worth roughly $1 billion. That burn represented 1.65% of the token’s eventual 100 million supply target in a single quarter. Revenue and token-burn measures describe different activities: protocol revenue reflects reported earnings, while a burn permanently removes tokens from circulation according to the mechanism’s rules.

Market sentiment among speculative traders appeared to cool. The unofficial “trenches” index reached “cold” for the first time since April, after recording euphoric conditions in August-September. In the NFT market, Punks were unchanged at 31 ETH, BAYC rose 6% to 5.6 ETH, and Pudgy declined 2% to 2.4 ETH. Hypurr gained 24% and Checks rose 15%, leading the reported NFT movers. Together, these figures depict a market with isolated pockets of gains but no uniform recovery across tokens, protocols, or digital collectibles.

Key Insights Table

Afterwards...

The recent market picture calls for careful observation rather than conclusions based on a single dramatic anniversary. Investors and researchers can learn more by examining liquidity, leverage, ETF flows, and the concentration of risk across different tokens. Better public data on liquidation mechanisms and market depth could help distinguish an orderly correction from a self-reinforcing cascade.

Market design is another area worth exploring. Traditional exchanges use circuit breakers and other safeguards, while crypto markets operate around the clock across many venues and jurisdictions. Further research could evaluate how pauses, coordinated risk controls, and clearer disclosures might work in decentralized or continuously traded markets without creating new vulnerabilities or unfair advantages.

Tokenization and stablecoins also deserve sustained, neutral assessment. Their potential uses in payments, settlement, and investment access should be weighed against custody risks, consumer protection, operational resilience, and legal obligations. Similarly, quantum technology will benefit from open standards, independent research, and clear explanations of its practical capabilities and limitations.

The most useful next step is to strengthen transparent data and resilient market infrastructure. Those efforts can help the public assess financial risks more accurately, while allowing emerging technologies to develop with accountability and informed oversight.