It took just over a month for the cryptocurrency market to erase almost all of the crypto market gains accumulated this year. According to data, the total market value, which reached a record $4.4 trillion on October 6, has suffered a 20% correction since then. This drop leaves the asset class with a modest increase of only 2.5% so far in 2025, a shock for a year that had been defined by strong institutional and regulatory adoption.
Market confidence fractured after a sudden liquidation of $19 billion in leveraged positions. The impact has been severe: Bitcoin has fallen 8% this week, its worst weekly performance since March, and broke its 200-day moving average, a key technical support level. Altcoins have suffered the sharpest losses, as, according to Augustine Fan of SignalPlus, “little new money” has flowed into these tokens or DeFi projects.
Analysts are now watching external factors. Jeff Mei of BTSE warned that “concerns that AI stocks are severely overvalued” are driving the decline; if tech sells off, Bitcoin could fall below $100,000. Although sentiment is gloomy, a glimpse of stabilization was seen on Thursday when US spot ETFs recorded $253 million in net inflows, breaking six days of outflows.
Disclaimer: Crypto Economy’s Flash News is produced from official and public sources verified by our editorial team. Its purpose is to quickly report on relevant events in the crypto and blockchain ecosystem.
This information does not constitute financial advice or investment recommendation. We always recommend verifying the official channels of each project before making related decisions.
