8h05 ▪
4
min read ▪ by
The cryptocurrency market is going through a turbulent period marked by a brutal correction of bitcoin and massive capital outflows. With a decline of more than 18 % since its all-time high of $106,000 in December 2024, some investors are already talking about the most painful cycle in bitcoin’s history. However, for seasoned players in the sector, this scenario is nothing new. Even darker periods have marked the evolution of the crypto market, and many see this correction as a temporary adjustment rather than a lasting collapse.
A brutal reversal after the euphoria of $106,000
The spectacular rally of bitcoin in 2024 peaked in December with an absolute record of $106,000, driven by the optimism triggered by the election of Donald Trump.
But just a few weeks later, the market flipped into a severe correction.
From the inauguration of the American president in January 2025, bitcoin began to retract, losing 18 % of its value, while the total market capitalization of crypto plunged by 25 %.
This wave of selling was amplified by a series of events that accelerated the panic:
- Massive outflows from exchange-traded crypto products (ETP) : $4.6 billion was withdrawn from crypto investment funds, showing a rapid disengagement from institutional investors ;
- Record liquidations in the spot market : on March 3, over $1 billion of positions were liquidated in a single day, amplifying selling pressure ;
- Profit-taking after Trump’s win : some investors anticipated massive post-election selling, including Arthur Hayes, co-founder of BitMEX, who had predicted such a movement.
This scenario recalls other past corrections, but analysts remain divided on the true severity of the situation.
A market stronger than in 2014 : the end of chaos ?
While this drop worries novice investors, veterans in the sector downplay the situation. Lucien Bourdon, an analyst at Trezor, reminds us that the market has already experienced much more difficult periods.
He notably cites the collapse of Mt. Gox in 2014, one of the most significant episodes in bitcoin’s history.
At that time, the disappearance of 850,000 BTC during a hack caused a dizzying drop of 85 % in bitcoin’s price and wiped out 70 % of trading volumes.
Unlike today, the crypto market was still embryonic, lacking institutional support and a structured regulatory framework.
Today, despite the volatility, the context is very different. Brett Reeves, head of European sales at BitGo, emphasizes that regulation and the rise of institutional products have profoundly changed the game.
“We must remember how much the market has evolved in a short time and the enormous potential it still holds,” he explains.
Even Mati Greenspan, founder of Quantum Economics, considers that this drop could be beneficial in the long run, as he points out that “this is the first time a crypto bull market is not fueled by massive monetary printing.”
While some question the exact nature of this cycle, others believe that the very concept of bull runs and bear markets could become obsolete.
Miles Deutscher, a crypto analyst, judges in a post on social media X (formerly Twitter) on March 13, 2025, that the market is evolving towards an unprecedented model, where traditional classifications lose their meaning.
If bitcoin and the altcoins remain under pressure, history shows that severe corrections are often followed by accumulation phases and new highs. In this context, the real question is not whether this cycle is the most painful, but rather which direction the market will take after this purge.
Maximize your Cointribune experience with our “Read to Earn” program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
