The cryptocurrency market has faced a significant downturn since the start of 2025, with some investors calling it the most painful cycle in history.
Some were disappointed about industry policy changes and the memecoin craze in the United States, while others even speculated about talent leaving the sector for other industries.
However, while the current crypto market state might look grim to some, the current cycle is far from being the most brutal on record, and many community members remain bullish.
“For those who have been through multiple cycles, this is just part of the process,” Trezor analyst Lucien Bourdon told Cointelegraph.
The post-Trump inauguration sale
The current decline in crypto markets came after Bitcoin (BTC) reached an all-time high above $106,000 in December 2024, with the spike largely attributed to optimism around Donald Trump’s victory in the US presidential election.
While many were optimistic, some investors, such as BitMEX co-founder Arthur Hayes, accurately predicted a crypto sell-off following Trump’s inauguration on Jan. 20.
Bitcoin price chart since October 2024. Source: CoinGecko
Since then, Bitcoin has tumbled more than 18%, with the total crypto market capitalization erasing almost all gains that came from Trump’s election win, dropping 25%.
In the post-Trump inauguration sale, investors offloaded about $4.6 billion from crypto exchange-traded products by March 7, while the spot market saw even more outflows, with at least $1 billion in liquidations in a single day on March 3.
What was the most brutal crypto sell-off in history?
But the most recent sell-off is not the worst on record. “If we’re talking about the worst Bitcoin cycle, 2014–2015 was possibly the most brutal,” Trezor’s Bourdon told Cointelegraph.
Referring to the collapse of the Mt. Gox crypto exchange, which suffered an 850,000 BTC loss in a security breach in 2024, the analyst highlighted the event as the worst Bitcoin sell-off on record.
Bitcoin price chart in the period from July 2013 to July 2016. Source: CoinGecko
“The Mt. Gox collapse wiped out 70% of Bitcoin’s trading volume, leading to an 85% drawdown in a market with no institutional support and far less liquidity,” Bourdon said.
More than just falling prices
According to Brett Reeves, head of BitGo’s European sales, there is a “great deal more to just falling pieces” in the current market.
In addition to bigger price downturns in the past, Reeves highlighted notable advancements in global crypto products and regulation, which point to crypto assets increasingly becoming integral to the international financial system. He said:
“While prices may be crashing for now, we must remember how far we’ve come in a short space in time and just how much potential this space has in the years ahead.”
Contrary to crypto doubters and pessimists, some industry executives even see the current market cycle as a bull market.
Related: EU retaliatory tariffs threaten Bitcoin correction to $75K — Analysts
“I actually think it’s the best,” Quantum Economics founder Mati Greenspan told Cointelegraph, adding:
“What sets this bull market apart from previous crypto bull runs is that it’s the first time we’ve seen prices rising over time that is not accompanied by copious money printing. This pullback is a short-term pain that will enable long-term gain.”
According to crypto analyst Miles Deutscher, terms like “bull market,” “bear market,” “cycle,” or “altseason” are not even suitable for the current market situation.
Source: Miles Deutscher
“This is a different market now,” he said in an X post on March 13.
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