On-chain data show substantial USDC transfers to centralized exchanges as Bitcoin declined to $81,000. CryptoQuant analyst Maartunn reported that the USDC Exchange Inflow indicator recorded multiple spikes, suggesting traders may be positioning to buy digital assets at lower prices. Short-term holders face significant unrealized losses not seen since November 2022.

Digital asset markets experienced significant volatility as more than $2 billion in leveraged positions were forcibly liquidated. Bitcoin fell to $82,000 while Ethereum dropped below $2,700. Long position holders accounted for approximately $1.8 billion of the liquidated value across major exchanges, according to Coinglass data.

The meme coin sector's market capitalization declined to $39.4 billion, down 66% from its January 5 peak of $116.7 billion. NFT valuations fell 43% over 30 days to $2.78 billion, the lowest level since April. Major tokens including Dogecoin, Shiba Inu, and Pepe recorded weekly losses exceeding 12%.

Layer-1 blockchain networks recorded significant decreases in daily active wallet addresses over the past year. Solana's daily active wallets dropped to 1.7 million–2.3 million from a September 2024 peak of nearly 32 million, while BNB Chain maintained the highest user activity at approximately 4.7 million daily users. Despite reduced wallet counts, value transfers and fee generation remained strong across leading networks.

Institutional allocators are viewing the current cryptocurrency market decline as potential entry opportunities, according to market analysts. Bitcoin has experienced significant selling pressure, with more than $2 billion in leveraged positions liquidated within 24 hours. Analysts note fundamental differences from previous market cycles, including broader institutional ownership and regulatory progress, though further downside remains possible.

Bitcoin dropped to approximately $80,500 on Friday before recovering toward $84,000, following stronger-than-expected U.S. employment data that showed 119,000 new jobs in September. The sell-off triggered over $2 billion in liquidations of leveraged positions within 24 hours, affecting roughly 400,000 traders. JPMorgan analysts cited approximately $4 billion in withdrawals from spot Bitcoin and Ethereum ETFs since early November as a primary driver of the correction.

The cryptocurrency market lost nearly $100 billion in market capitalization within 24 hours, pushing most corporate digital asset treasuries into negative territory. Bitcoin traded around $82,864 after declining as much as 10%, while Ethereum fell to $2,683. Strategy remains the sole major holder with an unrealized gain, holding 649,870 BTC worth more than $6.15 billion above cost.

Public companies holding cryptocurrency treasuries have seen their combined market capitalization fall to approximately $99 billion from $176 billion in July. Strategy holds 649,870 BTC with an unrealized gain of $6.1 billion, while Ethereum-focused Bitmine faces a $4.52 billion unrealized loss on its 3.56 million ETH position.