Bitcoin has fallen into bear-market territory, with prices plummeting by up to 23.4% from its January peak. The recent downturn has sparked investor flight, with over $1 billion being pulled out of Bitcoin ETFs on Tuesday alone.
Several factors have contributed to the decline, including a lack of concrete policy updates from the Trump administration, which had been expected to support the crypto sector. Additionally, last week’s nearly $1.5 billion hack of the Bybit exchange has added to the market’s woes.
Altcoins are also suffering, with most having erased gains made since the start of the year. The total crypto market cap has fallen from a peak of $1 trillion to $600 billion, according to research strategist Matt Mena.
Despite the downturn, long-term optimism remains high. On-chain signals still suggest an early-to-mid bull cycle, and experts point out that crypto markets often correct when leverage becomes excessive and bitcoin dominance rises.
Source: https://www.businessinsider.com/bitcoin-bear-market-btc-price-crypto-cryptocurrency-trump-policy-etf-2025-2