Bitcoin has fallen by about 20% from its all-time high, which was recorded in January after the inauguration of US President Donald Trump. This significant decline was the result of the impact of Trump’s aggressive policy towards allies and geopolitical rivals, which led to a loss of confidence among many investors. In addition, concerns related to high inflation rates continued to negatively affect financial markets.
The most popular cryptocurrency, Bitcoin, fell by more than 5% on Thursday, reaching $83,740. This put new pressure on the cryptocurrency market in general. This decline coincided with a broad sell-off in the market, as the cryptocurrency lost about 20% of its value compared to its previous high of $109,350 in January. This coincided with the Bybit exchange being hacked last week, which contributed to increasing the state of anxiety among investors.
Bitcoin and other cryptocurrencies continue to fall
Bitcoin has fallen for the fourth day in a row, dropping 5.6% to $83,740. This sequential decline has pushed it to a total decline of nearly 13% over the recent period, the biggest drop since August. This decline has also affected other cryptocurrencies such as Ethereum and Solana, each of which has lost between 7% and 10%. As the value of Bitcoin continues to decline, investors are concerned about the possibility of prices falling to $74,000.
What is behind this decline?
According to experts, there were several factors that contributed to this sharp decline. The most prominent of these factors are the inflows of exchange-traded funds into cryptocurrencies, in addition to Trump’s threats to impose tariffs on the European Union. These statements have increased concerns about the global economic outlook and prompted some investors to reduce their investments in the market.
Cryptocurrency Markets Bearish Phase
Avinash Shekhar, co-founder and CEO of Pi42, said that the cryptocurrency market has entered a bearish phase. He added that Bitcoin’s drop below $85,000 was one of the biggest sell-offs in 2025. He noted that the market witnessed a flash crash of $300 billion, indicating increased market volatility and investor confidence. Shekhar also stressed that investor interest in altcoins such as XRP has declined sharply, noting that the altcoin market is experiencing uncertainty. Regarding Bitcoin,
Shekhar added that its market dominance is on the rise, indicating that some long-term confidence in the cryptocurrency remains, but the continued frequency of flash crashes could indicate a fragile market. He explained that the coming weeks will reveal whether Bitcoin and other cryptocurrencies will be able to withstand the current pressures or if there are further declines on the horizon.
Other Cryptocurrencies in Collapse Mode
As for other cryptocurrencies, Ethereum and several prominent altcoins, such as Solana and Dogecoin, have continued to face significant selling pressure. Many investors have turned their focus to other markets as the cryptocurrency market continues to recover from its biggest-ever breakout last week.
Ethereum, the second-largest cryptocurrency by market capitalization after Bitcoin, has seen a sharp 10% drop in the past two days. The drop follows previous declines earlier in the week during Asian trading hours. Solana, on the other hand, has fallen by about 15% in the same period, while Dogecoin has fallen by about 13%.
In this context, Jeff Dorman, chief investment officer at Arca, pointed out that cryptocurrencies have been weak for eight weeks. He said that stocks and other financial instruments have not been affected enough to explain the weakness in cryptocurrencies, which mainly reflects the ongoing decline in the digital market.
Pressure continues on the cryptocurrency market
Ethereum continues to face significant pressure, despite cryptocurrency exchange Bybit pledging to recover the roughly $1.4 billion it lost to hackers last week. Meanwhile, Bybit has reportedly borrowed some of its ETH to recoup some of the losses, in a move to calm investors and limit the impact of the cyberattack on the market.
Impact of the downturn on crypto-related companies
The pressure has not been limited to cryptocurrencies alone, but also extended to the stocks of companies associated with them. For example, Coinbase Global Inc. has continued to record losses for six consecutive days, while MicroStrategy shares have fallen by about 5.7%, putting it in negative territory for the year. Meanwhile, shares of bitcoin mining company MARA Holdings Inc. fell by 5.3% on Monday, following a 13% decline the previous week.
Cryptocurrency Market Outlook
While cryptocurrencies continue to suffer from market volatility and global economic woes, the outlook remains uncertain for many investors. Some experts expect the market to see further declines if global economic tensions and aggressive policies towards cryptocurrencies continue.
On the other hand, others believe that Bitcoin may be able to partially recover in the near future, especially if some companies succeed in making new massive investments in this sector. However, the question remains whether cryptocurrencies will be able to withstand these pressures in the long term or whether the market is facing the beginning of a new phase of deep decline.
The recent decline in Bitcoin and other cryptocurrencies highlights the ongoing concern about instability in financial markets. Whether this decline is a temporary correction or the beginning of a larger decline.
