Crypto Market Update: Sector Loses 2025 Gains Amid Downturn, UNDP Launches Blockchain Training for Governments
November 7, 2025 — The cryptocurrency market experienced a sharp reversal in October, erasing nearly all the gains it had made earlier this year. Following a steep correction, the sector’s total market capitalization dropped approximately 20% from its record high, sparking concerns among investors and analysts about the market’s short-term outlook. Meanwhile, on a positive sign for adoption, the United Nations Development Programme (UNDP) announced initiatives to strengthen blockchain knowledge among government officials globally.
Crypto Market Performance: Bitcoin and Ethereum Slide
As of Friday morning (9:00 a.m. UTC), Bitcoin (BTC), the largest cryptocurrency by market value, was priced at US$103,902, down 3.0% in the past 24 hours. Its intraday range spanned from a low of US$99,931 to a high of US$103,421. Bitcoin has now declined over 20% from its early October peak and has officially entered bear market territory. This marks its second straight week of losses and the fourth down week in the past five, illustrating ongoing difficulties in regaining investor confidence after the recent market downturn.
Analysts point to a combination of macroeconomic factors and technical indicators impacting Bitcoin’s bear run. The U.S. reported a significant rise in layoffs during October—the highest in two decades—which has increased expectations for Federal Reserve interest rate cuts in December. Despite this challenging environment, former President Donald Trump reaffirmed a pro-cryptocurrency stance this week, encouraging the U.S. to become a “Bitcoin superpower” and endorsing regulatory efforts to support the sector, though stopping short of advocating direct governmental crypto purchases.
Technically, Bitcoin’s relative strength index (RSI) hovers at a weak 30.81, close to oversold territory, suggesting momentum remains fragile and the market could see continued declines or potentially a short-term relief rally if buyers intervene. Trader Ted Pillows highlighted that BTC is "holding above the $100,000 level for now” but cautioned that until Bitcoin closes above $106,000 on a strong daily candle, investors should prepare for further downside risk.
Ethereum (ETH), the second-largest cryptocurrency, was valued at US$3,338.69, representing a 4.1% increase over 24 hours but still contending with bearish pressure as it struggled near the US$3,300 level. Ethereum’s price dynamics followed a similar downward trajectory amid a major liquidation event, with spot sellers appearing to dominate and suppress recovery attempts.
Altcoins also faced significant losses: Solana (SOL) traded at US$157.08, down 3.1%, and XRP was down 4.8% at US$2.22. The market-wide selloff saw leveraged positions liquidated aggressively—Bitcoin contract liquidations amounted to roughly US$48.39 million in just four hours, predominantly long positions being forced closed. Ether saw about US$25.82 million in liquidations during the same period.
Market Capitalization and Broader Trends
Data from Bloomberg revealed that total crypto market capitalization peaked near US$4.4 trillion on October 6, only to decline by roughly 20% shortly thereafter, wiping out most of 2025’s gains and leaving the market up a modest 2.5% year-to-date. This steep downturn ranks among the sharpest corrections the market has seen since the last bear cycle.
Contributing factors include a liquidation cascade triggered by roughly US$19 billion in leveraged positions entering forced sell mode and dwindling liquidity exacerbated by fewer new inflows. Bitcoin notably dropped below its 200-day moving average for the first time in three years, signaling a potential shift in longer-term momentum.
Japan’s Banks Back Stablecoin Pilot for Cross-Border Payments
In regulatory and institutional developments, Japan’s Financial Services Agency (FSA) announced support for a collaborative stablecoin pilot project involving the country’s three largest banks: Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group. The banks plan to issue yen-pegged tokens under Japan’s revised Payment Services Act to facilitate cross-border payments.
Finance Minister Satsuki Katayama confirmed that the FSA will oversee the legal and operational compliance aspects of the initiative as it enters the testing phase. The JPYC stablecoin, fully regulated and backed by domestic savings and government bonds, recently launched as Japan’s first fully regulated yen-denominated stablecoin, underscoring the country’s progressive stance on digital currencies.
UNDP Expands Blockchain Education to Government Officials
Amid market volatility, the United Nations Development Programme (UNDP) is ramping up efforts to promote blockchain literacy within the public sector. The organization announced plans to launch a global training program aimed at government officials, intended to accelerate the adoption of digital infrastructure and blockchain-based solutions across various public services.
Robert Pasicko, head of UNDP’s Alternative Finance Lab, revealed that four countries would be chosen for the program’s initial rollout, planned within weeks. This initiative builds upon UNDP’s existing blockchain academy and includes both theoretical training and practical project support.
UNDP research identified over 300 potential government use cases for blockchain technology, including transparent tracking of funds, streamlined public-sector payments, and improved governance mechanisms. To support these goals, 25 major blockchain entities, including Polygon Labs, the Stellar Foundation, and the Ethereum Foundation, have engaged in discussions about forming an advisory group coordinated by the UNDP.
Outlook
The crypto market remains in a precarious position as investors digest recent losses and assess macroeconomic catalysts. Despite short-term volatility, institutional interest and innovative projects like the UNDP’s blockchain training reflect ongoing commitment to integrating blockchain technology on a broader scale. Market participants will be closely watching key technical levels and regulatory developments as 2025 progresses.
Stay updated on the latest cryptocurrency news and market analysis by following @INN_Technology.
Authors: Giann Liguid & Meagen Seatter
Investing News Network (INN)
Disclosure: The authors hold no direct investment interests in the companies mentioned.