Bitcoin just erased everything it gained this year. The cryptocurrency fell below $93,714 on Sunday, dropping beneath where it closed last year. That’s a brutal 30% decline from its peak, and all the early 2025 excitement is completely gone now.
Remember when Bitcoin hit that all-time high of $126,251 back on October 6th? That feels like a lifetime ago. Just four days after reaching that record, Trump made some unexpected tariff comments, and everything crashed. Bitcoin never really bounced back from that hit.
The big money has stopped flowing in. ETFs brought in over $25 billion earlier this year, pushing total assets to around $169 billion. But those steady inflows have dried up. Even Michael Saylor’s Strategy Inc., which became famous for hoarding Bitcoin, isn’t getting the same love from investors anymore. Their stock is trading near the actual value of their Bitcoin holdings, meaning nobody wants to pay extra for Saylor’s strategy.
Matthew Hougan from Bitwise thinks crypto was the first asset to sense trouble. Tech stocks are struggling too, and overall risk appetite has tanked. Smaller cryptocurrencies have it even worse, with some down 60% this year.
Conclusion
Bitcoin’s complete reversal highlights how quickly market sentiment shifts when institutional support evaporates, leaving cryptocurrency vulnerable to broader economic fears and risk-averse investors seeking safer havens.
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