Original article by Skerdian Meta | FXLeaders
Title: The Crypto Gains of 2025 Have Been Wiped Out by a Bearish Market
The early momentum seen in the cryptocurrency market in 2025 has largely disappeared, with current conditions reflecting a strong bearish trend. While the year began with enthusiasm and sharp price increases across major digital currencies, recent months have reversed much of those gains. Market data now suggests that the rally which fueled optimism earlier in the year may have been temporary. As bearish sentiment takes control, analysts and investors are reassessing their expectations for the remainder of 2025.
Overview of the Crypto Market in 2025
Cryptocurrencies experienced significant upside during the first quarter of 2025. Bitcoin (BTC), Ethereum (ETH), and many altcoins surged due to a combination of:
– Institutional interest
– Hopes for global regulatory clarity
– New blockchain applications and AI integration
– Expansion of decentralized finance (DeFi)
– General bullish sentiment following the 2024 halving event for Bitcoin
This optimistic phase saw Bitcoin almost reach a new all-time high, while Ethereum increased its dominance on the back of its Layer 2 scaling success. Platforms like Solana (SOL), Avalanche (AVAX), and Chainlink (LINK) rode the wave, touching multi-month or yearly highs.
Market sentiment during this time was extremely positive, as evidenced by:
– A rise in search queries related to crypto investments
– Higher inflow of capital into crypto exchanges
– Record-breaking trading volumes for altcoins
– Bullish projections from prominent analysts and influencers
The Reversal: Enter the Bears
Despite strong beginnings, bearish trends started dominating the market by mid-2025. The turning point seems to have occurred between May and June, when macroeconomic factors began to pressure cryptocurrencies. A combination of external and internal factors contributed to this downturn:
– Tighter monetary policy from central banks, especially the Federal Reserve
– Higher-than-expected inflation in core economies
– Profit-taking by institutional and retail investors
– Delays or complications in new crypto-friendly regulations
– Security breaches and protocol vulnerabilities on DeFi platforms
By the fall of 2025, these headwinds had eroded nearly all the gains made earlier in the year. Key indicators of bearish momentum included reduced trading volume, growing short interest, and increased stablecoin market cap dominance — suggesting money was moving out of risky assets.
Bitcoin’s Struggle Near Major Support Zones
Bitcoin, the bellwether of the crypto market, has seen its price reduce significantly from its yearly highs of over $68,000. It is now trading near critical support around the $36,000 to $37,000 level, approaching the 50-month moving average on the monthly chart.
Important technical developments:
– The price has respected a long-term ascending trendline since the 2022 lows
– A bearish divergence formed in momentum indicators such as RSI and MACD
– Bitcoin is hovering under its long-term 20-month moving average, often a sign of extended weakness
In the context of Fibonacci retracement levels, BTC has broken below the 50% and 61.8% retracement zones when measured from its swing low in 2022 to its 2025 peak. The next strong technical support stands around the 76.4% level near $31,000.
If Bitcoin fails to hold above the current ascending trendline, it may face deeper losses, potentially invalidating the bullish outlook for the post-halving cycle.
Altcoins Take a Bigger Hit
While Bitcoin has declined moderately, altcoins have suffered significantly worse losses. A sharp rotation out of riskier crypto assets has plunged prices of major altcoins sharply.
Here are some examples:
– Ethereum (ETH) fell from a 2025 peak of over $3,500 to under $2,050, losing more than 40%
– Cardano (ADA) dropped close to 50%, retracing gains
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