FameEX Hot Topics | 2025 Bitcoin Gains Vanish in Brief Weekend Crash

Bitcoin's recent plunge has briefly erased all its 2025 gains, pushing the cryptocurrency below its year-start price of $93,507 despite a backdrop of largely positive developments in the industry from corporations and governments. On Sunday, Bitcoin hit a low of $93,029, marking a 25% drop from its October all-time high. The asset began the year at $93,507, buoyed by optimism surrounding the crypto sector's evolution.

This year was widely expected to be bullish for cryptocurrencies following the inauguration of U.S. President Donald Trump on January 20, who assembled the most pro-crypto administration in history and has delivered on many campaign promises. Regulatory advancements under Trump have coincided with a surge in corporate Bitcoin treasury adoption and substantial inflows into spot Bitcoin exchange-traded funds, reinforcing institutional confidence.

Nevertheless, headwinds from President Trump's aggressive tariff policies and a historic 43-day U.S. government shutdown—resolved on Thursday—have triggered several double-digit price corrections in Bitcoin throughout 2025. Additionally, profit-taking by early Bitcoin holders and large whales has capped upward momentum, even amid favorable industry trends. Glassnode analysts countered the "OG whales dumping" narrative last week, describing it as typical late-cycle behavior rather than a mass exit, noting a steady distribution from older cohorts.

Analysts are debating the persistence of Bitcoin's traditional four-year cycle, given the unprecedented institutional and regulatory support compared to prior cycles. Bitwise CIO Matt Hougan remains optimistic for 2026, citing the "debasement trade" and growth in stablecoins, tokenization, and DeFi. "I think the underlying fundamentals are just so sound," Hougan stated last Wednesday. "I just think those are too big to keep down. So I think 2026 will be a good year."

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.