2025’s Crypto Increases Are Practically Gone Thanks to Bearish Market
Crypto prices are down to a low point that is close to where they started 2025 after weeks of bearish movement.
Quick overview
- The cryptocurrency market has seen a significant decline, erasing nearly all gains from 2025 and dropping about 20% since its peak.
- Bitcoin has experienced a nearly 9% drop this week, hovering around $100K after peaking at $124K earlier this year.
- Despite a bullish stock market and government support for cryptocurrency, investor confidence has plummeted, leading to $19 billion in liquidations.
- The crypto market faces challenges in regaining momentum, with calls for stronger regulatory frameworks to support its recovery.
The stock market may be bullish, but the last few weeks of crypto market movement have wiped out nearly all of the gains from 2025, and Bitcoin is nearly back to its starting value.
The cryptocurrency market peaked in 2025 on October 6th, reaching a value of close to $4.4 trillion. However, the price of cryptocurrency across the board has declined by about 20%, and it appears to be dropping further.
BTC/USDInvestor confidence in cryptocurrency has plummeted, and about $19 billion in liquidation has occurred since the early October peak. Bitcoin (BTC) on its own has dropped nearly 9% this week and is hovering around $100K.
Why Crypto Should be Higher
The turn of events over the past few weeks has sent shockwaves through the cryptocurrency market. The stock market has been climbing to record highs, but the cryptocurrency market is not doing as well. This is a year when the GENIUS At was approved to make stablecoins less risky and a Bitcoin reserve has been established by the federal government.
The United States government is on the side of cryptocurrency, but that has not been enough to keep momentum high for the market. Even with a strong economy and very little movement from inflation, cryptocurrency cannot seem to retain its gains.
Bitcoin added 35% to its value this year but lost most of those gains. It started the year off around $94K, peaked at $124K and lost much of its gains this past month. Even though investors expected the price of crypto to climb once Trump took office, the price at this point is lower than it was when he was sworn in. Despite his stance as a pro-crypto President, his support has not equated to significant retained gains.
The crypto market has a long uphill battle right now to get back to its recent peak. If Trump’s administration were to devote more resources and time to creating a strong regulatory framework for cryptocurrency, the market may do better, but the focus of the administration seems to be on tariffs and peace deals. The crypto market may have to wait a while for the pro-crypto president to do something significant about the market. For now, prices are floundering near where they started 2025 off.
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