The cryptocurrency market has experienced a notable decline since early 2025, leading some investors to describe it as one of the most arduous cycles in its history.
While certain individuals expressed disappointment regarding policy shifts in the industry and the surge in memecoins in the United States, others have even speculated that talent may be migrating away from the sector towards different fields.
Despite the current state of the crypto market appearing bleak to some, this cycle is far from the harshest on record, and many within the community retain a bullish outlook.
“For those who’ve experienced multiple cycles, this is merely part of the process,” said analyst Lucien Bourdon.
The post-Trump inauguration sell-off
The ongoing decline in cryptocurrency markets followed Bitcoin (BTC)’s peak of over $106,000 in December 2024, a surge largely credited to the excitement surrounding Donald Trump’s election victory.
While many held an optimistic view, some investors, including BitMEX co-founder Arthur Hayes, correctly anticipated a sell-off in the crypto space after Trump’s inauguration on January 20.
Bitcoin price chart since October 2024. Source: CoinGecko
Since that point, Bitcoin has fallen by more than 18%, with the overall crypto market capitalization wiping out nearly all the gains attributed to Trump’s election, plummeting by 25%.
In the aftermath of Trump’s inauguration, investors withdrew around $4.6 billion from cryptocurrency exchange-traded products by March 7, and the spot market experienced even greater outflows, with over $1 billion in liquidations occurring in a single day on March 3.
Was this the most severe crypto sell-off in history?
However, this latest sell-off isn’t the worst on record. “If we’re discussing the harshest Bitcoin cycle, 2014-2015 was arguably the most severe,” Bourdon remarked.
He referenced the collapse of the Mt. Gox exchange, which lost 850,000 BTC due to a security breach in 2024, noting it as the most significant Bitcoin sell-off in history.
Bitcoin price chart from July 2013 to July 2016. Source: CoinGecko
“The Mt. Gox incident resulted in a 70% reduction in Bitcoin’s trading volume, bringing about an 85% decline in a market that had no institutional backing and significantly less liquidity,” Bourdon explained.
More than just declining values
Brett Reeves, head of BitGo’s European sales, emphasized that there’s “far more at play than just falling prices” in the current market.
In addition to previous steeper price drops, Reeves pointed out significant advancements in global crypto products and regulations, indicating that crypto assets are becoming increasingly essential to the global financial system. He stated:
“While prices may currently be in decline, it’s important to recognize how much progress we’ve made in a short time and the potential this space holds for the coming years.”
In contrast to skeptics of cryptocurrency, some industry leaders consider the current cycle to be a bull market.
Related: EU retaliatory tariffs could push Bitcoin correction to $75K — Analysts
“I genuinely believe this is the best cycle,” asserted Mati Greenspan, founder of Quantum Economics, adding:
“What distinguishes this bull market from prior crypto rallies is that it’s the first instance where rising prices aren’t fueled by excessive money printing. This downturn is merely a short-term setback that will pave the way for long-term benefits.”
According to crypto analyst Miles Deutscher, terms like “bull market,” “bear market,” “cycle,” or “altseason” are not even appropriate for the current market conditions.
Source: Miles Deutscher
“This market is different now,” he stated in a post on March 13.