As the year 2025 draws to a close, the cryptocurrency market is experiencing a significant downturn, with both Bitcoin and Ethereum leading the decline. According to recent data, nearly 99% of Bitcoin investors who bought in the last 155 days are now holding a loss at $96,000, highlighting the risks associated with investing in cryptocurrencies.
Crypto Market Performance
The relentless selling pressure in the crypto market is primarily driven by existing holders exiting their positions, rather than options or manipulation. This has resulted in a broader downtrend, with cryptocurrencies potentially becoming one of the worst-performing asset classes of the year. In fact, if this pattern continues, crypto could underperform traditional markets and money market funds, making it a challenging year for investors.
Macro analyst Jim Bianco notes that the original 10 Bitcoin spot ETFs have seen $59 billion in cumulative inflows since their launch in January 2024, despite the downturn. However, the average purchase price for these ETFs is now $90,146, resulting in an unrealized gain of just $2.94 billion, or 4.7% of total inflows. This raises questions about the effectiveness of Bitcoin as a hedge against inflation and the narrative of continued money printing.
Altcoin Performance
The pain is not limited to Bitcoin, as altcoins across the board are experiencing significant losses. According to Glassnode, only 5% of altcoins are currently making gains, indicating a deep capitulation phase for the broader crypto market. This divergence between Bitcoin and altcoins is unprecedented, with institutional focuses and regulatory differences creating a split in market dynamics.
The combination of institutional inflows, retail issues, and altcoin capitulation paints a complex picture of a market in transition. As the year draws to a close, investors need to consider whether this is a temporary correction or the start of a longer-term bear market. The historical performance of “Uptober” and “Moonvember” will be among the worst-performing asset classes of 2025 unless there is a renewed catalyst for cryptocurrencies.
Conclusion
In conclusion, the cryptocurrency market is experiencing a significant downturn, with both Bitcoin and Ethereum leading the decline. The relentless selling pressure, driven by existing holders exiting their positions, has resulted in a broader downtrend, making crypto one of the worst-performing asset classes of the year. As investors navigate this volatile landscape, it is essential to consider the risks associated with crypto investing and the potential for a longer-term bear market. For more information, visit https://cryptoslate.com/crypto-on-track-to-be-one-of-the-worst-performing-asset-classes-of-the-year/
