Bitcoin’s 2025 Rally Vanishes as Bear Market Deepens

Just over a month after hitting an all-time high, Bitcoin has lost more than 30% of its gains this year as enthusiasm for pro-crypto policies fades. The cryptocurrency dropped below $93,714 on Sunday, a level not seen since last year’s closing, when markets rallied following Trump’s election. 

After reaching a record $126,251 on October 6, it tumbled following Trump’s tariff comments, which caused global market chaos. It was trading at $94,869 on Monday morning in Singapore.

“The general market is risk-off,” said Matthew Hougan of Bitwise. “Crypto was the first to flinch.”

In the past month, major buyers, including ETFs and corporate treasuries, have pulled back, weakening the support that helped push prices higher earlier this year. The cooling tech stocks also reduced risk appetite.

Institutions fueled Bitcoin’s rise, with ETFs adding over $25 billion and assets reaching about $169 billion, framing it as a hedge against inflation and chaos. That narrative is weakening, leading to disengagement.

“The selloff is profit-taking, institutional outflows, macro uncertainty, and leveraged longs being wiped out,” said Jake Kennis. “The market has temporarily turned downward after a long range-bound period.”

Michael Saylor’s Strategy Inc., once a corporate crypto leader, now shows its Bitcoin holdings near parity with its stock, indicating reduced investor interest.

Bitcoin’s cycles of booms and busts have been ongoing since the 2017 surge, which saw a 13,000% increase, followed by a 75% decline. Hougan sees the current pullback as an opportunity, with retail sentiment turning negative, avoiding another 50% drop.

Bitcoin accounts for nearly 60% of the $3.2 trillion cryptocurrency market, with prices dropping to $74,400 in April before rebounding. Recent tariffs by Trump caused record liquidations, and recovery has been slow.

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Smaller tokens, more volatile and often rallying higher, have suffered more, with indices down around 60%.” Cyclicality is normal in crypto,” said Chris Newhouse, but widespread skepticism about investing and lack of catalysts prevail.