Crypto market wipeout: Digital assets erase nearly all 2025 gains after early-October record high
The global cryptocurrency market has lost significant ground after reaching a record high earlier this month, with traders pulling back amid fears of deeper losses.At its October 6 peak, the total market capitalisation of all cryptocurrencies hit nearly $4.4 trillion. However, a 20% slump 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 roughly $19 billion in leveraged positions were suddenly liquidated, a move that shattered investor confidence. Since then, traders have shown little appetite to bet on a quick rebound.The selloff comes despite what had been a bullish year for the sector, marked by increased regulatory clarity and growing institutional interest. President Donald Trump’s push to make the US a global crypto hub had earlier triggered a 35% rally in Bitcoin. But sentiment has since reversed sharply, with the total crypto market value now lower than when Trump took office.
Bitcoin slides below key support
Bitcoin, the world’s largest cryptocurrency, has fallen 9% this week, putting it on track for its worst weekly performance since March. It has also slipped below its 200-day moving average, a crucial technical level that had held since the 2022 bear market. As of Friday afternoon in London, Bitcoin was trading just below $100,000.While the recent downturn has hit the entire crypto market, altcoins, smaller and more volatile tokens, have suffered the steepest losses, lagging far behind Bitcoin and Ether this year.According to Bloomberg, Jeff Mei, chief operating officer at crypto exchange BTSE, attributed the latest slide in digital assets partly to growing worries that AI stocks are excessively overvalued.He cautioned that a broader correction in tech could deepen the crypto slump, saying, “If AI and tech stocks see a major selloff, Bitcoin could easily slip below the $100,000 mark — and altcoins may tumble even further.”Still, there are tentative signs of stabilisation. After six straight days of withdrawals, US spot Bitcoin and Ether ETFs recorded $253 million in inflows on Thursday, offering a brief respite to the battered market.
