Crypto’s Q4 wipeout is among worst in memory–but better times may be ahead, says analyst

Core Insights - The cryptocurrency market has experienced a significant downturn, with Bitcoin dropping to under $87,000, marking a 14% decline in just one week [1] - Altcoins such as Ethereum and Solana have also seen substantial losses, with Ethereum down 13% to around $3,000 and Solana down 9% to $139 [2] - The decline in cryptocurrency prices is occurring despite earlier optimism for 2025, driven by favorable regulatory conditions under President Trump [3] Market Performance - Bitcoin has fallen approximately 31% from its all-time high of around $126,000 since October 6, while the S&P 500 has only gained about 3% during the same period [3] - The recent downturn was exacerbated by a significant liquidation event on October 10, which was the largest in history, coinciding with geopolitical tensions and macroeconomic factors [4] Institutional Perspective - Despite the current market challenges, there is an optimistic outlook from some analysts regarding institutional adoption of cryptocurrency, suggesting potential recovery in the future [5] - Predictions indicate that Bitcoin may bottom out between $84,000 and $86,000 before a recovery, with historical drawdowns typically lasting over 50 days [5]