NEW YORK: The great crypto crash of 2025 entered a new phase, as bitcoin plunged to its lowest level in seven months, extending the more than US$1 trillion wipeout across the digital‑asset world.
The largest cryptocurrency fell to as low as US$88,522 in New York trading, with the latest rout hitting investors big and small – from retail dip‑buyers to digital‑asset treasury firms whose stock premiums are vanishing.
The next psychological thresholds lie around US$85,000 and US$80,000, with the 2025 trough of US$77,424 – set during April’s tariff‑related turbulence – in focus.
The total market capitalisation of cryptocurrencies peaked at about US$4.3 trillion on Oct 6 and now hovers near US$3.2 trillion.
Still much of that change reflects paper losses, not real‑world cash leaving hands.
Following a cascade of forced liquidations on Oct 10, when more than US$19bil of leveraged crypto positions were offloaded, the market’s fragility was exposed.
That event triggered a chain reaction of margin calls, exchange-traded outflows and halted fresh buyer interest.
“Investors are stabbing in the dark a bit – they haven’t got any direction on macro, so all they can see is what on-chain whales are doing and they’re getting quite worried about it,” said James Butterfill, head of research at CoinShares.
Bitcoin’s surge to just north of US$126,000 earlier in the year was based on twin pillars: expectations of multiple US Federal Reserve interest‑rate cuts and growing institutional adoption.
Both narratives have stalled while momentum buyers have beaten a retreat.
The fall is dealing a heavy blow to digital‑asset treasury firms, whose valuations were built on the earlier rally.
Meanwhile, ether dropped back below US$3,000. After lagging bitcoin during the first half of this year’s rally, ether – the second-largest token – eventually rose to almost US$5,000 in August to briefly clear its 2021 high. It has since relinquished those gains. — Bloomberg
