Bitcoin erased all its 2025 gains after a sharp weekend downturn pushed the asset below $90,000 — a level lower than where it started the year. The sell-off comes despite months of positive regulatory developments, growing institutional interest, and pro-crypto moves from the U.S. government.
Bitcoin Slides Below Its 2025 Starting Point
A turbulent weekend in the crypto market sent Bitcoin plunging to a low of $89,389 on Tuesday, marking a 31% drop from its October all-time high. The decline briefly dragged the coin below its January starting price of $93,507, effectively wiping out all gains accumulated earlier in the year.
Although Bitcoin managed to rebound slightly to around $91,369, the fast-paced volatility underscores growing uncertainty among traders. CoinGecko data shows that the asset remains far below its recent highs, despite widespread expectations that 2025 would be a breakout year for digital assets.
Macro Pressures and Policy Tensions Fuel Volatility
The optimism that followed President Donald Trump’s inauguration in January — and the formation of the most crypto-friendly administration in U.S. history — helped establish strong momentum early in the year. Regulatory clarity, expanding adoption of Bitcoin treasuries, and surging inflows into spot Bitcoin ETFs all contributed to a bullish environment.
However, lingering macroeconomic tensions have weighed heavily on markets. Trump’s tariff battles and the now-resolved 43-day U.S. government shutdown both triggered abrupt corrections, creating double-digit pullbacks across multiple crypto assets. Each shock has amplified fragility in investor sentiment despite ongoing industry growth.
Whale Activity Adds Selling Pressure
Beyond macro forces, long-term Bitcoin holders and whales have been contributing to downward pressure by taking profits. Portions of large wallets have been trimmed even as industry milestones continue to roll in, slowing Bitcoin’s ability to sustain upward rallies.
Still, Glassnode analysts argue that fears around “OG whale dumping” may be overstated. They describe current selling patterns as typical late-cycle profit-taking rather than a mass exit. Historically, this type of distribution emerges near the end of extended bullish periods, not during structural breakdowns.
Marketwide Declines Hit Major Altcoins
Bitcoin is not alone in its retracement. Ether has fallen nearly 8% since the start of the year, while Solana has shed more than 28%. Many altcoins have suffered even steeper losses, reinforcing the broad-based nature of the market correction.
Despite strong institutional interest in digital assets, risk-off sentiment has dominated the market as investors brace for continued uncertainty. The cooling across major altcoins signals that confidence remains fragile across the entire crypto ecosystem.
Analysts Question Four-Year Cycle But Expect a 2026 Rebound
The downturn has revived debate about whether Bitcoin’s historic four-year cycle still holds in an era defined by ETF inflows, regulatory advancements, and broader institutional involvement. Some analysts argue that traditional cycle patterns may now be less reliable.
Bitwise CIO Matt Hougan, however, believes structural fundamentals remain strong enough to support a major surge in 2026. Citing the “debasement trade” thesis and accelerating adoption across stablecoins, tokenization, and DeFi, he maintains that the building blocks for long-term growth remain firmly in place.