Bitcoin has plummeted as the virtual currency market becomes unstable. Credit: Thrive Studios ID, Shutterstock
Bitcoin’s turbulent waters have once again taken a dramatic turn, this time leaving traders blinking at their screens in disbelief. After racing to record highs just a few weeks ago, the world’s most famous cryptocurrency is currently in a precipitous crash that wiped out all of this year’s gains.
Prices have fallen below $92,000 (€79,000) per coin this week, a far cry from the all-time high of $126,000 (€108,700) reached in late October, but at one point it has fallen further, dropping below $90,000 at one point in overnight trading. In cryptocurrency terms, this is the equivalent of a light suddenly turning on at the end of a very long party.
Bitcoin rally ends, market puts on brakes
What has caught many investors off guard is how quickly sentiment has reversed. Just a month ago, Bitcoin was riding a torrid rally. It has now fallen so far that analysts are calling it a textbook bear market plunge.
“Bitcoin is widening its losses… driven by concerns about overvaluation in the tech sector and broader risk-off sentiment,” said Victoria Scoler, head of investments at Interactive Investor, summarizing the mood that has emerged across global markets.
This means that when nerves run high and investors get nervous, riskier assets are the first to flee. Bitcoin, which is famous for its swings, has taken a hit. All the profits built up in 2025 have disappeared, leaving the company at a lower level than where it started in January.
Academics say the decline is being amplified by growing talk of an AI bubble, as well as concerns that the stock market is too tilted toward a handful of tech giants. When these warning lights start flashing, traders tend to back away from anything that looks speculative. And few things scream “speculative” like Bitcoin.
A reminder of what Bitcoin is and why panic is spreading so quickly
One of the things that makes Bitcoin so unstable is exactly what its proponents like: the decentralized system behind it. Instead of central banks managing currencies, blockchain records all transactions across thousands of computers. Transparent, tamper-resistant, and fully exposed to market mood swings.
When traders feel insecure, Bitcoin is often the first victim. No interest is offered, there is no physical asset behind it, and its value depends entirely on the trust. In a high interest rate environment, Bitcoin suddenly looks like a very risky place to park your money.
“There’s a general sense of tension in the market, and Bitcoin seems to be the center of attention,” Scoler said. And now those nerves are hard to ignore.
Supporters are celebrating and buying more
But while some traders are retreating, Bitcoin enthusiasts are doing the opposite. Billionaire investor Michael Saylor, one of Bitcoin’s most vocal defenders, has hailed the crash as if it were a Black Friday sale.
“Volatility is a gift to the believers,” he said, adding that “tourists” who only got into Bitcoin when it was popular will be spooked by the decline.
And Thaler kept his mouth shut and put his money where his mouth was. His company Strategy Inc. (formerly MicroStrategy) raised 8,178 bitcoins between November 10 and 16, spending approximately $835.6 million (721 million euros) at an average price of $102,171 (88,000 euros). For him and other longtime followers, this roller-coaster moment isn’t a crisis, it’s an opportunity.
Whether they are correct or not depends on what happens next. Bitcoin has crashed and rebounded before. I’ve had it crash before and it stayed there for quite a while. For now, traders are bracing for another tumultuous chapter in the history of cryptocurrencies, one where fortunes can change overnight and no one knows what the next chart will look like.
