Crypto Market Loses $400 Billion Amid Bitcoin Decline

The cryptocurrency market experienced a significant downturn from September 18 to 26, 2025, shedding $400 billion. The decline fueled by Bitcoin and Ethereum price drops, occurred amidst heightened on-chain activities by long-term holders.

The event highlights volatility triggered by market selloffs and long-term holder behavior, leading to decreased investor confidence and significant financial losses in major cryptocurrencies.

A week-long crypto market sell-off led to the loss of $400 billion, with Bitcoin and Ethereum experiencing major price declines. Long-term holders engaged in significant on-chain activity, further influencing market sentiment.

Brian Armstrong, CEO of Coinbase: “Bitcoin could reach $1 million in five years, citing regulatory improvements and institutional demand.”

Market impacts were severe with $400 million liquidated in crypto derivatives on September 25. Bitcoin prices fell approximately 12% to $109,000-$111,000, and Ethereum saw declines of about 22%.

Financial impacts extended to institutional behaviors, as regulatory pressures and macroeconomic signals heightened sell pressure. The U.S. Federal Reserve’s stance and a strong US dollar contributed to this trend as noted by Macro Economic Analysts.

Historical trends indicate an annual “Red September” market pattern. Past events, like the March 2020 COVID crash, showed similar impacts from investor emotions and leveraged positions in the cryptocurrency markets.

Future financial and regulatory outcomes remain uncertain. Analysts suggest potential recovery if regulatory frameworks stabilize and institutional interest grows. Data trends show historical volatility patterns persist amidst external economic pressures.