In 2025, crypto markets showed two opposing forces: venture funding climbed past $19 billion year-to-date while a single day erased over $19 billion in leveraged positions. October alone added $2.5 billion in new rounds, underscoring steady capital for core infrastructure even as markets whipsawed. This clash matters for institutional investors, product builders and compliance officers because it pairs extreme liquidity risk with sustained financing for roads-and-bridges projects.
The shock hit on 10 October 2025 when a rumour about a “Trump tariff” sparked heavy selling: Bitcoin fell to $105 732, Ethereum to $3 764 and smaller coins such as SUI shed up to 70 %. Exchanges closed more than $19 billion in leveraged positions in a single day, highlighting the scale of liquidity risk. Even as prices crashed, venture funds still wired $2.5 billion into startups during October, showing that forced selling and fresh capital can coexist.
Funding flows, investor focus and regulatory heat
Money did not flow evenly. The second quarter raised $6.05 billion across 292 deals, and by July the yearly tally stood at $11.1 billion. Most checks went to frontier teams mixing blockchains with AI, with Story Protocol landing $80 million and Nous Research taking $50 million. Observers now expect the full-year figure to pass $25 billion.
At the same time, traders point to possible manipulation—Binance is often named in public posts—adding reputational and regulatory heat. Among products, Ethereum rollups held up better than most during the rebound, hinting at buyer preference for scalable infrastructure.
Regulators are considering tighter rules as they investigate the recent market crash and the role of exchanges in amplifying the volatility. The sudden liquidation of over $19 billion in leveraged positions on October 10, 2025, has intensified the urgency for oversight, highlighting the fragility of current systems during periods of extreme market stress.
Meanwhile, investor behavior is shifting noticeably. Capital is increasingly flowing toward core blockchain technologies that offer faster transaction settlement and more secure custody solutions. This reflects a growing preference for reliability and infrastructure over speculative gains. With over $19 billion raised so far in 2025 — including $2.5 in October alone — the focus is clearly on long-term utility rather than short-term price surges.
The next watch points are ETF rule updates or SEC decisions—Nasdaq has filed fresh plans—and the final 2025 totals. If the pace holds, the year should close above $25 billion, shaping product and compliance road maps for 2026.
