The cryptocurrency market has experienced a sharp downturn since early 2025, leading some investors to label it as one of the most challenging cycles in history.
While some blame regulatory shifts and the surge of memecoins in the U.S., others speculate that talent is migrating to different industries.
However, despite the current turbulence, this cycle is far from the worst the market has seen. Many in the crypto community remain optimistic about the future.
“For those who have weathered multiple market cycles, this is just another phase in the journey,” said Lucien Bourdon, an analyst at Trezor.
Post-Trump Inauguration Sell-Off
The recent downturn followed Bitcoin’s record-breaking rise to over $106,000 in December 2024, a surge driven by optimism surrounding Donald Trump’s presidential victory in the United States.
While some celebrated the rally, experienced investors like BitMEX co-founder Arthur Hayes foresaw a market correction after Trump’s inauguration on Jan. 20.
Since that peak, Bitcoin has slid over 18%, and the total cryptocurrency market capitalization has dropped by 25%, reversing most of the gains triggered by Trump’s election win.
By March 7, investors had withdrawn approximately $4.6 billion from crypto exchange-traded products, while the spot market saw massive outflows, including a single-day liquidation of at least $1 billion on March 3.
Was This the Harshest Crypto Crash Ever?
Despite the current decline, history suggests it isn’t the worst downturn the crypto market has endured. “If we’re discussing Bitcoin’s most brutal cycle, the 2014–2015 period likely takes the top spot,” Bourdon noted.
He pointed to the infamous collapse of the Mt. Gox exchange, which lost 850,000 BTC in a hack in 2014, as one of the most devastating moments in Bitcoin’s history.
“The Mt. Gox debacle wiped out 70% of Bitcoin’s trading volume, leading to an 85% market drop in an environment with no institutional backing and significantly lower liquidity,” Bourdon explained.
More Than Just Price Drops
According to Brett Reeves, head of European sales at BitGo, there’s more to consider than just declining prices when assessing the state of the market.
Past downturns have been steeper, but Reeves emphasized the substantial progress in global crypto adoption and regulatory frameworks, suggesting that digital assets are becoming increasingly embedded in mainstream finance.
“Even though prices are falling now, it’s crucial to recognize the incredible advancements made in such a short time and the vast potential ahead,” Reeves said.
While skeptics continue to doubt crypto’s viability, some industry leaders see the current cycle as a period of opportunity rather than crisis.
A Bull Market in Disguise?
“I actually believe this is the best cycle yet,” said Mati Greenspan, founder of Quantum Economics. He elaborated:
“What makes this bull run unique compared to past cycles is that it’s the first time prices have been increasing without excessive money printing. This pullback may feel painful now, but it sets the stage for long-term gains.”
Crypto analyst Miles Deutscher suggests that traditional terms like “bull market,” “bear market,” or “cycle” may not fully apply to the current landscape.
“This is a different kind of market now,” he remarked in a post on X on March 13.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
