The cryptos market is going through a period of turbulence marked by a brutal correction of bitcoin and massive capital outlets. With a drop of more than 18 % since its historic summit of $ 106,000 in December 2024, some investors are already talking about the most painful cycle in the history of Bitcoin. However, for experienced players in the sector, this scenario is not new. Even more darker periods have marked the evolution of the crypto market, and many see in this correction a temporary adjustment rather than a lasting collapse.
A brutal reversal after the euphoria of $ 106,000
The spectacular rally of Bitcoin in 2024 reached its highest point in December with an absolute record of $ 106,000, carried by the optimism triggered by the election of Donald Trump.
But barely a few weeks later, the market changed in a severe correction.
From the inauguration of the American president in January 2025, Bitcoin began a withdrawal, and lost 18 % of its value, while the total capitalization of the crypto market fell by 25 %.
This wave of sale was amplified by a series of events that accelerated panic:
- Massive outings of crypto products negotiated on the stock market (FTE): $ 4.6 billion was removed from Crypto investment funds, which has shown rapid disengagement from institutional;
- Record liquidations on the Spot market: March 3, more than $ 1 billion in positions were liquidated in a single day, which amplified the sales pressure;
- Profits after Trump's victory: some investors had anticipated a massive post-election sale, notably Arthur Hayes, co-founder of Bitmex, who had predicted such a movement.
This scenario recalls other past corrections, but analysts remain divided on the real gravity of the situation.
A stronger market than in 2014: the end of chaos?
If this drop worries novice investors, veterans in the sector put the situation into perspective. Lucien Bourdon, analyst at Trezor, recalls that the market has already experienced much more difficult periods.
He notably quotes the collapse of MT. Gox in 2014, one of the most striking episodes in the history of Bitcoin.
At that time, the disappearance of 850,000 BTC during a hacking caused a vertiginous fall of 85 % of the price of Bitcoin and wiped out 70 % of exchange volumes.
Unlike today, the Crypto market was still embryonic, without institutional support and a structured regulatory framework.
Today, despite volatility, the context is very different. Brett Reeves, responsible for European sales at Bitgo, stresses that the regulations and the development of institutional products have profoundly changed the situation.
“We must remember how the market has evolved in a short time and the enormous potential it still contains,” he explains.
Even Mati Greenspan, founder of Quantum Economics, considers that this decrease could be beneficial in the long term, because he highlights that “it is the first time that a Bull Market Crypto is not doped by a massive monetary impression”.
While some wonder about the exact nature of this cycle, others believe that the very concept of Bull Run and Bear Market could become obsolete.
Miles deutscher, crypto analyst, judge In a publication on the social network X (ex Twitter) on March 13, 2025 that the market evolves towards an unprecedented model, where the old classifications lose their meaning.
If Bitcoin and Altcoins remain under pressure, history shows that severe corrections are often followed by accumulation phases and new increases. In this context, the real question is not whether this cycle is the most painful, but rather what direction will take the market after this purge.
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