Why Is the Crypto Market Down Today?

KUALA LUMPUR, 4 OCTOBER 2026 —

Crypto market capitalization declined 1.8% to $2.88 trillion on October 3, as Bitcoin reversed from resistance levels and leveraged liquidations amplified losses across major tokens.

Bitcoin traded near $84,627, down 1.92% during the period, according to CoinMarketCap data. The asset briefly cleared $87,000 on Friday before reversing, leaving the initial market rebound unable to sustain itself. Its recent low near $83,898 provides a downside reference, while the failed rally highlights resistance around the $87,000 mark. Ethereum fell 2.14% to approximately $2,684, while XRP lost 3.65% to $1.48 during the same timeframe.

Solana and Dogecoin also declined, extending losses across other leading cryptocurrencies.

The market move was influenced by US economic data released earlier in the week. US employers added just 29,000 jobs in September, compared with a 90,000 forecast. Unemployment increased to 4.2% from 4.1%, while revisions reduced July and August employment totals by 60,000. August’s increase was revised to 133,000 jobs, while July’s updated reading showed a decline of 10,000.

Average hourly earnings rose 0.1% monthly, bringing annual wage growth to 3.0%, according to the Bureau of Labor Statistics.

These figures shifted Federal Reserve expectations, with market pricing placing an October rate hike at 17%. This strengthened expectations that the central bank could pause tightening. Bitcoin initially advanced after the employment release, but that improvement failed to sustain the broader crypto market rally. The disconnect between macroeconomic relief and asset price performance suggests underlying technical pressures remain significant.

Leveraged trading amplified the selling pressure. CoinGlass figures showed $433.57 million in liquidations over 24 hours as of 06:02 UTC. Long positions added $321.77 million, or about 74% of the total, while short liquidations totaled $111.80 million. Liquidations occur when losses reduce an account's collateral to an amount lower than its leveraged position. Exchanges then forcibly close positions, potentially intensifying declines and exposing other leveraged accounts to further losses.

Fund flows from exchange-traded funds also weighed on sentiment. US spot Bitcoin ETFs recorded $149 million in net outflows on September 30, according to SoSoValue data. None of the 12 tracked Bitcoin funds registered net inflows during that session. Ethereum spot ETFs recorded another $59.58 million in net outflows on the same date. None of the 10 tracked Ethereum funds posted inflows, bringing combined withdrawals to approximately $208.58 million.

Bitcoin’s withdrawals ended a nine-day ETF inflow streak, interrupting the stronger demand recorded earlier in September. Across the full month, Bitcoin funds attracted $2.65 billion, while Ethereum ETFs received $832.43 million. The shift from inflows to outflows indicates a change in institutional appetite for direct crypto exposure via US-listed vehicles.

For Malaysian investors, the volatility in global crypto markets underscores the risks associated with leveraged trading. While the country’s regulatory framework for digital assets continues to evolve, local participants should monitor global liquidity trends. The recent ETF outflows suggest that international institutional demand can shift rapidly, affecting price discovery for major tokens traded on local exchanges.