The great crypto crash of 2025 entered a new phase on Wednesday, as Bitcoin plunged to its lowest level in seven months, extending the more than $1 trillion wipeout across the digital‑asset world. The largest cryptocurrency fell to as low as $88,522, with the latest rout hitting investors big and small — from retail dip‑buyers to digital‑asset treasury firms whose stock premiums are vanishing. Token prices regained some ground after Nvidia gave a strong revenue forecast, helping counter concern that a global surge in AI spending is poised to fizzle.
Bitcoin rose as much as 2.5% on Thursday morning during Asia trading. The next psychological thresholds lie around $85,000 and $80,000, with the 2025 trough of $74,425 — set during April’s tariff‑related turbulence — in focus. The total market capitalization of cryptocurrencies peaked at about $4.3 trillion on Oct. 6 and now hovers near $3.2 trillion. Still, much of that change reflects paper losses, not real‑world cash leaving hands.
Following a cascade of forced liquidations on Oct. 10, when more than $19 billion of leveraged crypto positions were offloaded, the market’s fragility was exposed. That event triggered a chain reaction of margin calls, exchange-traded outflows and halted fresh buyer interest. “Investors are stabbing in the dark a bit — they haven’t got any direction on macro, so all they can see is what on-chain whales are doing and they’re getting quite worried about it,” said James Butterfill, head of research at CoinShares. Both narratives have stalled while momentum buyers have beaten a retreat.
The fall is dealing a heavy blow to digital‑asset treasury firms, whose valuations were built on the earlier rally. Meanwhile, Ether dropped back below $3,000. “I think we are closer to the end of the selling than the beginning, but markets are uncomfortable and crypto could have more downside here before it finds a base to recover from,” said Matthew Hougan, the San Francisco‑based chief investment officer at Bitwise Asset Management.
Bitcoin was trading at $92,395 as of 11:39 a.m. in Singapore on Thursday. Bitcoin fell on Friday and was set for a second straight week of losses as risk appetite for cryptocurrencies was battered by concerns over US-China trade tensions and potential credit risks. US tech stocks and Bitcoin tumble as investors turn risk‑off.
Leave a Reply