The cryptocurrency market is experiencing one of the harshest selling waves of recent years in the last quarter of 2025.
Ethereum's 13% decline to $3,000 in the last week and Solana's 9% loss to $139 in the same period have created deep pressure on the altcoin market.
The picture is no different for publicly traded companies: Strategy shares fell 16% on a weekly basis, while Circle fell 20%.
Market Reversal and Contributing Factors
This sharp decline follows a period in which the cryptocurrency sector entered 2025 with high expectations. US President Donald Trump's crypto-friendly approach had supported markets for much of the year, allowing Bitcoin to outperform the S&P 500. However, since October 6th, the situation has reversed: Bitcoin has fallen approximately 31% from its peak of $126,000, while the S&P 500 has gained 3% in the same period. Analysts attribute this decline to the major crash in October, the Federal Reserve's cautious stance, and investors' shift away from risky assets.
Expert Analysis on Market Uncertainty
CoinShares Head of Research James Butterfill stated that the primary cause of market uncertainty is a lack of data, saying, “Markets are flying blind right now. The lack of macro data has triggered widespread risk asset selling. The rapid downgrade of interest rate cut expectations in December has further intensified this selling pressure.”
Crypto's recent decline began on October 10th with the largest wave of liquidations in history, according to CoinGlass data. This movement, coupled with Trump's threat of new tariffs against China, quickly eroded market risk appetite. Macroeconomic developments, which have increasingly weakened expectations for a Fed rate cut, have further perpetuated this decline.
Optimism Amidst Declines
Despite this, some experts remain optimistic. K33 Research President Vetle Lunde, in a report published today, noted that institutional adoption has increased significantly this year, stating, “We anticipate a brighter period ahead due to the acceleration of institutional inflows coupled with expansionary monetary policies.”
Lunde stated that he expects Bitcoin to bottom in the $84,000-$86,000 range. Recalling that in past declines, pullback periods have exceeded 50 days, the analyst noted that the current period is only 43 days old, arguing that there is time for a recovery.