The heavy fall of Bitcoin shocked the financial markets

The digital currency market is going through turbulent times, and the latest statistical data shows that the total value of this market has fallen dramatically over the past few months. According to published reports, around $2 trillion of capital has left the cryptocurrency trading cycle, and the total market value has fallen from a peak of $4.379 trillion in October 2025 to an alarming $2.27 trillion now. In the meantime, Bitcoin, as the king of digital currencies, has attracted the most attention and has shocked investors and economic analysts by registering a heavy fall.

Bitcoin, which managed to conquer the price peak of $124,000 in October 2025, is now trading in the range of $65,000 with a drop of more than 20%. This price is practically half of its all-time high and the lowest price level since the beginning of the second term of Donald Trump’s presidency. The statistics of 2026 show that Bitcoin has experienced an annual decline of about 28% so far, which puts heavy psychological pressure on holders and traders.

The situation is not so favorable for other cryptocurrencies. Ethereum, as the second most important currency in the market, has decreased by 38% in the same period of time. Experts believe that the decrease in the willingness to take risks in the global markets has led investors to safer assets and has caused the outflow of liquidity from risky markets. In just one recent month, nearly 800 billion dollars have disappeared from the crypto market value, which shows the intensity of the selling pressure and distrust in the market environment.

This free fall has not only affected retail traders, but also large and institutional companies. Microstrategy, known as the largest corporate holder of Bitcoin, has seen its stock fall in freefall. The company’s share price has fallen from $457 in July 2025 to around $111, which is the lowest since August 2024. These companies, which had accumulated digital capital by relying on the support policies of the United States government, are now dealing with serious challenges in their financial balance sheets.

Analysts list several reasons for this drop, the most important of which are the uncertainties about the Federal Reserve’s interest rate and concern about the price bubble of artificial intelligence companies. The appointment of Kevin Warsh as head of the US central bank has also fueled these concerns, as the possibility of shrinking the Federal Reserve’s balance sheet and reducing liquidity directly affects speculative assets such as Bitcoin. This bearish trend does not appear to be a short-term correction and the market has entered a period that may last for months.

Source: coinmarketcap