Cryptocurrencies in free fall: the bear market wipes out nearly all 2025 gains

After a year that began with optimism and record highs, the world of cryptocurrencies is facing a harsh wake-up call: in just over a month, almost $800 billion in value has evaporated.

It took little more than a month for the enthusiasm that had swept through the cryptocurrency market in 2025 to turn into concern. After reaching an all-time high of nearly $4.4 trillion in total market capitalization on October 6, the entire sector has since lost about 20% of its value, trimming annual gains to a modest +2.5%.

The downturn began with the sudden liquidation of roughly $19 billion in leveraged positions—an event that rattled investor confidence and triggered a wave of selling. Since then, traders have remained cautious and reluctant to bet on a rebound.

The speed of the correction is striking, especially in a year that seemed poised to mark the final integration of cryptocurrencies into the traditional financial world. The Trump administration’s push to make the United States “the global epicenter of crypto” had fueled a fresh wave of enthusiasm, driving Bitcoin up 35% in the early months of the year.

Today, however, the picture looks very different. Bitcoin has fallen 8% this week alone, trading around $101,000 on Friday morning and breaking below its 200-day moving average, a technical level considered crucial by analysts. It’s the worst week for the cryptocurrency since March.

Altcoins, the smaller and more volatile tokens, have been hit even harder. With few catalysts on the horizon and ongoing doubts about security and regulation, mainstream interest appears likely to remain subdued.

The crypto sell-off also coincides with a correction in the tech and artificial intelligence sectors. Should the sell-off in AI and tech stocks deepen, analysts fear that Bitcoin could slip below the $100,000 mark, while altcoins could face an even steeper decline.

Still, not all hope is lost. After six consecutive days of outflows, U.S.-listed spot Bitcoin and Ether ETFs recorded $253 million in inflows on Thursday — a first sign of stabilization that offers hope for a pause in the storm. In the digital world, euphoria and fear travel at the same speed.

Andrea Pelucchi