The drop from the October all-time-high spike was indeed a clear warning. Looking at the crypto market today, the outlook is grim. Bitcoin has lost nearly 50% of its value since that peak, total market capitalization has fallen back to Trump re-election levels, and major altcoins such as Solana have corrected by as much as 70% or more. What goes up — especially when it goes up too fast — must eventually come down.
Current flows are eerily reminiscent of the November 2021 tech and crypto meltdown, making that period worth revisiting. Total crypto market cap fell from just over $3 trillion to roughly $736 billion during that drawdown. That decline was accompanied by a series of brutal headlines, including the Terra/Luna collapse and the eventual FTX blow-up in 2022. Bitcoin staged an impressive sixfold rally from its November 2022 lows.
Aside from the brief Liberation Day sweep toward $75,000, the market barely retraced — and it is now paying the hefty price. A 70% decline from the $126,400 record high would bring Bitcoin back toward the $30,000 area. That may sound extreme from today’s levels, but in crypto, nothing is impossible. Extreme volatility is part of the asset class’s DNA, on both the upside and the downside.
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