Bitcoin’s fall from its recent high of $110,000 sent shockwaves through the entire ecosystem. The cornerstone of crypto even dipped below $90,000 for the first time in 2025.
When Bitcoin sneezes, altcoins catch pneumonia. Ethereum and other major cryptocurrencies lost up to 50% of their value. The memecoin sector alone shed nearly $40 billion since February 1. Ouch.
Multiple factors triggered this bloodbath. A stock market selloff spilled into crypto, while skyrocketing interest in China’s DeepSeek AI app diverted attention. Financial sector instability didn’t help.
Neither did warnings from crypto veterans like Arthur Hayes. Global economic slowdown and rising inflation? Just the cherry on top of this misery sundae.
Market sentiment? Pure panic. Investors fled risky assets faster than rats from a sinking ship. Trading volumes plummeted as casual investors exited the market, a classic sign of a bear market taking hold. The collapse of TerraUSD, once the third-largest cryptocurrency, created a devastating contagion effect throughout the market. The extreme fear index lit up like a Christmas tree.
Some delusional optimists view the crash as a buying opportunity. Others debate whether this is a mere correction or the beginning of crypto winter 2.0.
We’ve seen this movie before. The crash echoes previous downturns—the 2021-2024 crypto winter, the FTX collapse, and the 2018 wipeout that erased $27 billion overnight.
Volatility is crypto’s middle name.
Looking ahead, analysts are split. Some predict a multi-year bear market. Others believe this cleansing is necessary for a healthier industry.
Robert Kiyosaki even forecasts a Bitcoin explosion after the stock market crash. Meanwhile, regulatory concerns and environmental issues linger, but innovation continues despite the downturn.
Trump’s new 25% tariff policy on imports from Canada and Mexico has further destabilized the already shaky cryptocurrency market.
Crypto, after all, has nine lives. It’s currently using its fifth or sixth.
