The cryptocurrency market experienced a substantial sell-off in late 2025, leaving investors concerned. This includes a notable drop in Ethereum price, with a 13% decline to $3,000 within the last week, along with Solana’s 9% loss to $139. This downturn also affects publicly traded companies like Strategy shares and Circle, both suffering drops of 16% and 20% respectively over the same period. 2025 started with optimistic expectations fueled by US President Donald Trump’s crypto-friendly approach that helped Bitcoin outperform the S&P 500. However, since October 6th, this trend has reversed; Bitcoin dropped approximately 31% from its peak of $126,000, while the S&P 500 gained 3% during the same period. Analysts attributed this downturn to market volatility triggered by a major crash in October, the Federal Reserve’s cautious approach to interest rates, and investor shift away from riskier assets. CoinShares Head of Research James Butterfill highlights the lack of data as a primary cause for uncertainty. He states, “Markets are flying blind right now due to a shortage of macro data which has caused widespread selling of risky assets”. This sell-off began on October 10th with a historic liquidation wave according to CoinGlass data and was worsened by Trump’s threat of new tariffs against China. In addition, the diminishing expectations for a Fed rate cut have further contributed to market downturns. Experts remain cautiously optimistic despite this decline. Vetle Lunde, K33 Research President, notes that institutional adoption has increased significantly this year and predicts a brighter period ahead due to growing institutional inflows and expansive monetary policies. This optimism suggests that the Bitcoin price may bottom in the $84,000-$86,000 range. Lunde believes this timeframe of market recovery is within the range of 50 days which signifies a longer pullback duration than normal. It’s important to remember that this information isn’t financial advice.