- Q4 2025 sees historical downturn due to macroeconomic policies.
- BTC and ETH prices drop sharply.
- Market seeks stability amid ongoing policy uncertainty.
Q4 2025 sees a significant crypto market downturn, paralleling the 2018 decline, with over $19B in liquidations and BTC, ETH experiencing sharp price falls. Federal Reserve’s rate policy and macroeconomic shocks drive the instability.
The event holds importance as it underscores instability in the cryptocurrency market and reflects broader economic uncertainties, causing significant market reactions.
Crypto Market Downturn
The crypto market downturn in Q4 2025 marks the worst period since 2018, with factors like macroeconomic shifts leading to significant price declines and record liquidation volumes.
Key players such as the Federal Reserve and prominent traders like Pentoshi noted the impacts of policy decisions and market sentiment, influencing significant market changes.
Pentoshi, a trader, stated, “There are a lot of people in incredible pain right now myself included in that.”
Financial Losses and Volatility
The immediate effects included substantial financial losses for traders and severe volatility across major cryptocurrencies like BTC and ETH, shaking investor confidence. The downturn resulted in $19 billion worth of liquidations, leading to a major deleveraging across the crypto ecosystem and impacting the sentiment of market participants.
Historical Precedents and Future Outlook
Historical precedents highlight comparisons to previous market crashes, reinforcing the scale of the current downturn within the industry. Possible financial, regulatory, and technological outcomes suggest the need for enhanced risk management and policy adjustments, supported by historic trends and ongoing analysis of market dynamics.
Jerome Powell, Chair of the Federal Reserve, notably mentioned, “A further rate cut in December was not a foregone conclusion. Far from it.”
About the author
French Tax Official Sells Crypto Investor Data to Criminals
French tax official accused of selling crypto investor data, highlighting security concerns.
Fed Rate Cut Pause Possible After 2025 Reductions
Fed holds potential pause on rate cuts after 2025 adjustments, impacting markets and crypto.
Analyst Willy Woo Expresses Bitcoin Optimism for Early 2024
Bitcoin expert Willy Woo predicts January-February growth, but holds a cautious view of 2026.
Starknet Resolves Bug, Resumes Operations Post-Rollback
Starknet fixed a bug causing an 18-minute rollback, ensuring no L1 transactions were affected.
ETH Breaks $3,100 With Modest Daily Gain
ETH surpasses $3,100 with a 0.14% rise; no major catalysts involved.
BNB Chain Foundation Acquires Four Meme Tokens
BNB Chain Foundation purchases four meme tokens totaling $200k under the $100M incentive program.
Related
French Tax Official Sells Crypto Investor Data to Criminals
French tax official accused of selling crypto investor data, highlighting security concerns.
Fed Rate Cut Pause Possible After 2025 Reductions
Fed holds potential pause on rate cuts after 2025 adjustments, impacting markets and crypto.
Analyst Willy Woo Expresses Bitcoin Optimism for Early 2024
Bitcoin expert Willy Woo predicts January-February growth, but holds a cautious view of 2026.
Starknet Resolves Bug, Resumes Operations Post-Rollback
Starknet fixed a bug causing an 18-minute rollback, ensuring no L1 transactions were affected.
ETH Breaks $3,100 With Modest Daily Gain
ETH surpasses $3,100 with a 0.14% rise; no major catalysts involved.
BNB Chain Foundation Acquires Four Meme Tokens
BNB Chain Foundation purchases four meme tokens totaling $200k under the $100M incentive program.
