Bitcoin has fallen sharply for the second time in as many weeks, wiping more than $1 trillion from the global crypto market and fuelling concerns that the downturn could accelerate further.
The price of the world’s largest cryptocurrency is currently sitting at £69,317 at time of writing, marking a roughly 25% decline over the last six weeks and bringing it back to levels last seen a year ago.
The slump comes just weeks after Bitcoin hit a record high sitting just below £93k in early October, capping a rally that began in late 2024.
This sudden reversal could signal the beginning of a more sustained bear market. Previous Bitcoin cycles have typically seen the asset lose around 75% of its value after reaching a new all-time high.
The sharp pullback will likely spook those who are relatively new to this kind of asset, but there’s a case to be made that we’ve seen this pattern time and again with crypto – but this could be different.
Across the market, more than $1 trillion has been wiped out over the same period, marking the steepest decline in the industry’s history over six weeks.
Other cryptocurrencies have also been hit hard, with Ethereum and Solana both falling by roughly a third since the start of October.
Trump’s Tariff Shock Ripples Through Crypto
Market turbulence has been compounded by events in the United States. Bitcoin’s surge in late 2024 followed Donald Trump’s presidential victory, with the former president styling himself as the first “crypto president” and pledging favourable regulation and a Bitcoin treasury.
He has stood by some of those commitments, though not to the extent many investors hoped.
Other policies have sparked turmoil. After Bitcoin reached its new record high in early October, Trump announced plans for 100% tariffs on Chinese imports. The move triggered the largest liquidation event in cryptocurrency’s history, erasing half a trillion dollars in hours and impacting more than 1.6 million traders – Trump’s own meme coin fell to around 10% of its peak value.
Although the White House stepped back from the tariff plans in late October, crypto markets have not recovered their earlier momentum, and Bitcoin has now erased its year-to-date gains.
Analysts Eye Possible ‘Santa Rally’
Despite the downturn, some market analysts believe the correction may create conditions for a short-term rebound. Investors are watching developments in the US closely for signs of a potential “Santa rally.”
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One driver could be the “tariff dividend,” a proposal from President Trump that would see each US citizen receive $2,000. Previous one-off stimulus payments during the Covid pandemic were followed by surging crypto prices as some recipients invested directly into digital assets.
Attention is also turning to next month’s Federal Open Market Committee meeting. Interest rate cuts in September preceded bitcoin’s most recent ascent to record highs, and any further loosening of monetary policy could push investors back toward higher-risk assets such as cryptocurrencies.
