Bitcoin wiped out its massive summer rally this week — dropping well below the $100,000 mark on Tuesday. The cryptocurrency fell as much as 7.4% to hit a five-month low of $96,794 amid a broader decline for the crypto market. Investors have gradually pulled away from riskier assets as the US Federal Reserve hesitantly approaches interest rate cuts. A brutal wave of liquidations had also wiped out billions in bullish positions for cryptocurrency investors in October.
The cryptocurrency fell to $96,794 in New York on Tuesday — down more than 20% from record highs reached a month ago. Bitcoin reached a record high above $126,000 on October 6, and this is the first time it has fallen below the $100,000 mark since June. According to a Bloomberg report, the plunge is consistent with a bear market in equities. Several alt-coins also posted similar declines — bringing losses for many of the less easily traded and liquid tokens to more than 50% this year. Ether reportedly slipped as much as 15% on Tuesday.
Data from CoinMarketCap suggests that the global crypto market has lost approximately $840 billion in aggregate market value over the past month. October also saw Bitcoin record its worst monthly performance since 2018 as the tariff war launched by US President Donald Trump took a fresh turn. Cryptocurrencies also face several other headwinds — including outflows from exchange-traded funds and concern about potential selling by digital-asset treasury firms.
The rise and fall of Bitcoin in 2025
Bitcoin (and indeed cryptocurrencies as a whole) rose to new heights in 2025 as the Trump administration backed legislation to ease regulatory burdens. The token had passed both $110,000 and $120,000 marks in a matter of weeks as multiple major companies — including Trump Media — announced investment plans.The US also built up its own bitcoin reserve with Treasury Secretary Scott Bessent indicating that the federal stockpile totalled $15 billion to $20 billion in assets by August. It was also viewed as a safe haven asset as the US government headed into a shutdown last month.
But the rosy scene was also offset by several concerns — including the frequently announced and modified US tariffs. Crypto markets had crashed in early October after Trump threatened to impose a 100% tariff on imports from China — reigniting fears of a fresh trade war. The announcement had sparked panic and what data analysis site CoinGlass called “the largest liquidation event in crypto history” on October 10. Prices had also declined sharply in the lead-up to the US Federal Reserve meeting that culminated in a decision to cut interest rates by a further quarter-point last week.