While Bitcoin’s meteoric rise to $109,241 in January 2025 had crypto bulls dancing in the streets, the party didn’t last long. The world’s favorite digital currency has plummeted 25% from its all-time high, leaving investors scrambling for explanations and their calculators. So much for those “to the moon” predictions.
The timing couldn’t be worse. President Trump’s latest round of tariffs has sent global markets into a tailspin, with Canada, Mexico, and China bearing the brunt of his trade war enthusiasm. The announcement of a 25% tariff confirmation has particularly rattled markets across North America. Add in the Federal Reserve’s hawkish stance on interest rates, and you’ve got a perfect storm of economic uncertainty. Spoiler alert: uncertainty and speculative assets don’t play well together.
Technical analysts are pulling out their hair looking at the charts. Bitcoin’s crash bears an eerie resemblance to the 1987 Black Monday collapse, and support levels are crumbling faster than a cookie in hot coffee. The next major support sits at $77,000, but some experts are eyeing a far more dramatic target: $10,000. Yes, you read that right – 2020 prices. Smart investors are placing stink bids at various support levels to capitalize on the panic selling.
Bitcoin’s technical nightmare echoes Black Monday, with support levels vanishing and experts whispering the unthinkable: a return to $10,000.
The broader crypto market isn’t helping either. Ethereum, Solana, and pretty much everything else with a blockchain is bleeding red. The fixed supply cap of Bitcoin isn’t providing the price stability many had hoped for during this market downturn. Investors are fleeing to stablecoins like scared cats during a thunderstorm. The total market cap of cryptocurrencies has taken a nosedive that would make Olympic divers jealous.
Bloomberg’s senior strategist isn’t mincing words: Bitcoin could very well revisit those 2020 levels. The lack of strong support below $77,000 is about as reassuring as a chocolate teapot. Institutional investors, once enthusiastic to jump on the crypto bandwagon, are now backing away slowly.
Even the retail crowd, famous for their “buy the dip” mentality, seems to be having second thoughts. Market sentiment has shifted from “when Lambo?” to “where’s the exit?” Speculators are unwinding positions faster than you can say “cryptocurrency,” and those optimistic deregulation dreams have evaporated like morning dew.
The real question isn’t whether this crash will continue – it’s how far down the rabbit hole we’re going.
