The global cryptocurrency market has lost significant ground after hitting an all-time high earlier this month, with traders pulling out over fears of deeper losses.At its peak on October 6, the total market capitalization of all cryptocurrencies reached almost $4.4 trillion. However, a 20% decline since then has erased most of this year’s gains, leaving the asset class up just 2.5% in 2025, according to CoinGecko data.The downturn began shortly after the all-time high, when about $19 billion in leveraged positions were suddenly liquidated, a move that shattered investor confidence. Since then, traders have been reluctant to bet on a quick rebound.This massive sell-off comes despite a bullish year for the sector, marked by clearer regulations and growing institutional interest. President Donald Trump’s efforts to make the United States a global crypto hub had already triggered a 35% rally in Bitcoin. But sentiment has since reversed sharply, with the total value of the crypto market now lower than when Trump took office.
Bitcoin slides below key support
Bitcoin, the world’s largest cryptocurrency, fell 9% this week, putting it on track for its worst weekly performance since March. It also fell below its 200-day moving average, a crucial technical level that has been holding since the 2022 bear market. As of Friday afternoon in London, Bitcoin was trading just below $100,000.As the recent downturn has hit the entire crypto market, altcoins, smaller and more volatile tokens, have suffered the biggest losses, far behind Bitcoin and Ether this year.According to Bloomberg, Jeff Mei, chief operating officer of cryptocurrency exchange BTSE, attributed the latest decline in digital assets in part to growing concerns about excessive overvaluation of AI stocks.He warned that a broader correction in tech could worsen the crypto crisis, saying: “If AI and tech stocks experience a major sell-off, Bitcoin could easily fall below the $100,000 mark – and altcoins could fall even further.” »There are, however, tentative signs of stabilization. After six straight days of withdrawals, U.S. Bitcoin and Ether spot ETFs saw $253 million in inflows on Thursday, providing a brief respite to the struggling market.
