Key Takeaways
Powered by lumidawealth.com
- Global crypto market cap fell 20% since October’s $4.4T peak, leaving only a 2.5% YTD gain.
- Bitcoin dropped 9% this week, its worst week since March, breaking below the 200-day moving average near $100,000.
- Altcoins suffered the steepest losses as liquidity and new inflows dried up.
- Leveraged unwinds totaling $19B triggered the selloff, eroding trader confidence.
- ETF inflows of $253M on Thursday hint at early stabilization.
A Fast Fall from Record Highs
The crypto market’s explosive 2025 rally has reversed sharply.
After peaking at $4.4 trillion in early October, total crypto market value has plunged 20%, nearly erasing all annual gains. The downturn began when $19 billion in leveraged positions were liquidated, sparking cascading sell orders.
This marks a stunning reversal from midsummer, when Trump’s pro-crypto policies and regulatory clarity had pushed Bitcoin to record levels and boosted institutional participation.
Bitcoin Breaks Key Support
Bitcoin, once up 35% for the year, is now down 9% this week alone, on pace for its worst week since March.
It fell below the 200-day moving average, a critical technical level that had held since the 2022 bear market.
At around $100,000, the token trades below where it stood when Trump took office, highlighting the depth of sentiment change.
“Excluding Bitcoin and Ether, crypto has largely been trading on the backfoot for months,” said Augustine Fan of SignalPlus. “There’s been little new money flowing into alt-tokens or DeFi projects.”
Altcoins Lead the Rout
Smaller tokens have suffered disproportionate losses, with DeFi and gaming tokens collapsing amid thin liquidity and investor caution.
Analysts cite security concerns, unclear regulation, and a lack of new inflows as drivers of the prolonged weakness.
Jeff Mei, COO of BTSE, warned that macro linkages may exacerbate the downturn:
“If we see a selloff in AI and tech stocks, Bitcoin could fall below $100,000 and altcoins could fall even further.”
Signs of Stabilization
Despite the rout, there are hints of resilience.
After six straight days of ETF outflows, US spot Bitcoin and Ether ETFs recorded $253 million in inflows on Thursday.
Still, traders remain cautious, with analysts warning of continued volatility until market confidence and liquidity return.
