Bitcoin plunges 28% from recent highs, wiping out 2025 gains amid broader sell-off in speculative investments.
The global cryptocurrency market has shed more than $1.2 trillion in value since early October 2025, marking one of the sharpest and fastest corrections in the sector’s history as investors flee high-risk assets.
According to data from CoinGecko, the combined market capitalization of over 18,000 digital assets has fallen 25% from its peak on October 6, dropping from roughly $3.6 trillion to approximately $2.4 trillion.
Bitcoin (BTC), the largest cryptocurrency, has led the decline, falling over 28% in the past six weeks to around $89,500 — its lowest level since April 2025 and now essentially flat year-to-date after touching all-time highs above $108,000 earlier this year.
Leverage Wipeout and the “10/10” Event
The steepest single-day drop occurred on October 10, 2025, when more than $20 billion in leveraged crypto positions were forcibly liquidated — the largest daily wipeout ever recorded.
Traders now grimly refer to the event simply as “10/10.”
Analysts attribute the intensity of the sell-off to widespread use of high leverage, particularly in perpetual futures contracts.
When prices began sliding, cascading stop-loss orders and forced liquidations accelerated the decline.
“Crypto investors love leverage. Every cycle we see traders get over-extended thinking ‘this time is different,’” said Ryan Rasmussen, head of research at Bitwise Asset Management.
From Trump Euphoria to Reality Check
The crash has erased nearly all of the gains that followed President Donald Trump’s post-election promises to make the United States the “bitcoin superpower” and the appointment of a crypto-friendly SEC chair.
Despite continued institutional adoption and improving regulatory clarity, macro pressures have overwhelmed bullish sentiment.
Recent cooling in expectations for a December Federal Reserve rate cut has hurt risk assets across the board.
Lower interest rates typically boost the appeal of non-yielding assets like bitcoin and altcoins by reducing the opportunity cost of holding cash or Treasuries.
Broader Market Contagion
The crypto rout has coincided with weakness in global equities:
– Hong Kong’s Hang Seng Index −1.7%
– Japan’s Nikkei 225 −3.2%
– South Korea’s Kospi −3.3%
– Europe’s Stoxx 600 −1.3% (early Tuesday trading)
– U.S. futures pointing to further declines
A Goldman Sachs index tracking unprofitable tech companies — a favorite among retail traders — has fallen 19% since mid-October, highlighting reduced risk appetite across speculative investments.
Not All Coins Treated Equally
While bitcoin is down 28% from its peak, many altcoins have suffered far worse:
– Shiba Inu (SHIB): −60% YTD
– Sui (SUI): −60%
– Avalanche (AVAX): −60%
Six of the top 20 cryptocurrencies by market cap are now down more than 40% in 2025.
Analysts: Aftershock, Not Collapse
Some industry participants argue the current downturn is primarily the lingering unwind from October’s leverage-fueled liquidation cascade rather than a fundamental breakdown.
“The fundamentals — institutional inflows, regulatory progress, and adoption trends — remain intact,” said David Namdar, CEO of CEA Industries.
“This is an extended aftershock of a massive deleveraging event, not the start of a new bear market.”
What’s Next for Bitcoin and Crypto?
Traders are watching the Federal Reserve’s December meeting closely.
A surprise rate cut could reignite risk-on sentiment, while a pause would likely prolong the current consolidation.
As of November 18, 2025, bitcoin trades around $89,500, with market participants split between those calling for a retest of $80,000 and others expecting a rebound toward six figures if macro conditions stabilize.