The global crypto market slipped into the red on Wednesday, with total market capitalisation declining by 1.0% to $3.74 trillion, according to data from CoinMarketCap. The 24-hour trading volume stood at $238 billion, indicating a modest slowdown in trading activity as traders adopted a wait-and-see approach.

Out of the top ten cryptocurrencies by market cap, eight traded lower over the past 24 hours, reflecting broad-based weakness. The downturn comes amid renewed global trade uncertainty and cautious investor sentiment, with Bitcoin and Ethereum both failing to sustain key resistance levels.

Bitcoin and Ethereum Lead the Decline

Bitcoin (BTC), the world’s largest cryptocurrency, fell 0.8% over the past day to trade at $107,735, bringing its market cap down to $2.14 trillion. The flagship asset briefly dropped to an intraday low of around $107,500, after being rejected near $109,000 earlier in the session.

According to CoinGlass data, Bitcoin currently faces dense liquidation zones near $111,000, while the nearest support lies around $106,600. A decisive move below this support could expose the $105,000 region, with a deeper correction potentially targeting $102,000. Conversely, a breakout above $110,000 could trigger a rebound toward $112,800–$115,000, where stronger selling pressure is expected to emerge.

Ethereum (ETH) also lost ground, dropping 1.5% to $3,831. The second-largest crypto asset continues to trade within a wide consolidation range between $3,750 and $4,250, a structure that has persisted since early October. Analysts note that the declining volume suggests reduced participation from both retail and institutional traders.

If ETH can reclaim the $3,950 resistance level, it may retest $4,150 and $4,400 next. However, a sustained fall below $3,800 could invite further downside toward $3,650 or even $3,500.

Among other top altcoins, Binance Coin (BNB) slipped 0.9% to $1,068, Solana (SOL) dropped 0.7% to $184.92 and XRP declined 1.4% to $2.40. Meanwhile, Lido Staked Ether (stETH) stood out as the lone top-10 gainer, inching 1.0% higher to $3,828.

Winners and Losers: Mixed Fortunes in Altcoins

Despite the overall market softness, a handful of smaller tokens managed to defy the downturn. MonbaseCoin led the day’s gainers with a 5.6% rise, followed by EVAA Protocol, up 4.0% to $7.39, and the memecoin GeorgePlaysClashRoyale, which surged 40.2%, an outlier move amid otherwise bearish sentiment.

In contrast, Dogecoin (DOGE) fell 1.9% to $0.1909, while Cardano (ADA) slipped 1.5% to $0.6358. Aster (ASTR) edged down 0.3% to $0.099 and Hyperliquid (HYPE) traded nearly flat at $35.93.

Adding to market jitters, early Bitcoin whale Owen Gunden transferred 364 BTC (worth $40.25 million) to crypto exchange Kraken earlier today, according to on-chain data. The move sparked speculation about potential selling pressure, though Gunden still retains a massive holding of 10,959 BTC, valued at approximately $1.19 billion.

Global Developments: US–India Trade Deal in Focus

Outside of the crypto-specific landscape, broader macroeconomic developments are also influencing sentiment. Reports suggest that the United States and India are close to finalising a landmark trade agreement, which could cut tariffs on Indian exports to the US from roughly 50% to 15%.

In return, India would gradually reduce its imports of Russian oil and open its agricultural sector to greater US access. The deal, potentially to be announced during the ASEAN Summit (26–28 October), could reshape global supply chains and redirect capital flows across Asia.

Analysts at Bitunix note that confirmation of such a deal could temporarily dampen risk appetite in the crypto market, as investors reprice assets in response to shifting trade and currency dynamics. However, they also point out that in the long term, ongoing de-dollarisation trends and the rise of regional settlement systems could enhance the structural demand for digital assets such as Bitcoin and stablecoins.

Sentiment and Institutional Flows: Fear Dominates Despite ETF Inflows

Investor sentiment continues to deteriorate. The Crypto Fear and Greed Index dropped to 29, marking a sharp fall from 33 yesterday and 37 last week, plunging the market further into the “fear” zone. Compared to last month’s neutral reading of 47, the steady decline underscores rising caution and profit-taking among traders.

Interestingly, the drop in sentiment comes even as spot Bitcoin and Ethereum ETFs in the US recorded strong inflows earlier this week. On 21 October, Bitcoin ETFs saw a combined net inflow of $477.19 million, led by BlackRock’s IBIT ($210.9M) and Ark 21Shares ARKB ($162.85M). Other positive contributors included Fidelity’s FBTC ($34.15M), Bitwise’s BITB ($20.08M) and VanEck’s HODL ($17.41M).

Ethereum ETFs also experienced $141.66 million in net inflows on the same day, with Fidelity’s FETH ($59.07M) and BlackRock’s ETHA ($42.46M) leading the pack. Notably, Grayscale’s ETHE fund posted a healthy $22.58M inflow, signalling renewed investor interest after weeks of outflows.

Adding a positive note to adoption trends, US retail chain Bealls announced it will accept crypto payments through Flexa across its 660 stores in 22 states, marking another step toward mainstream digital asset integration.

Outlook: Sideways Consolidation Ahead

With Bitcoin hovering near $108,000 and Ethereum consolidating below $3,900, the crypto market appears to be in a holding pattern ahead of major macro events. Traders are closely monitoring developments in the US–India trade negotiations, ETF inflows and on-chain whale activity for clues on near-term direction.

For now, market participants are treading cautiously as risk appetite softens and volatility declines. If Bitcoin manages to reclaim the $110,000–$112,000 zone, it could reignite bullish momentum. Until then, the market seems poised for sideways movement, with sentiment dictated more by global policy headlines than on-chain fundamentals.