Experts Discuss the Recent Crypto Market Decline

The crypto market recently experienced its most chaotic period in 2025, with losses exceeding $1.2 trillion, as Bitcoin (BTC) dropped drastically from a peak of $120,000 down to around $80,000.

Many investors felt a sense of déjà vu reminiscent of the crashes of 2017 and 2022. However, experts on this week’s episode of Byte-Sized Insight suggest that the current downturn is not as dire as reported.

Bitcoin’s Sensitivity to Liquidity

Noelle Acheson, a macro analyst and author of Crypto is Macro Now, stated that this decline is relatively minor and is attributed to liquidity changes rather than systemic issues. “Bitcoin is one of the most sensitive assets to liquidity sentiment,” she remarked.

Acheson mentioned how Bitcoin’s supply remains fixed while its demand fluctuates based on public sentiment. During this downturn, Bitcoin and Ether (ETH) saw a decline in market dominance as investors withdrew from crypto altogether rather than moving to safer crypto assets.

Recognizing Market Maturity

Tim Meggs, the CEO of Lo:Tech, pointed out that this downturn reflects a newfound maturity in the market. Unlike previous crashes that resulted in rapid liquidations and corporate collapses, this period has shown more deliberative decision-making from institutional investors. “Institutions don’t operate at the pace retail does,” Meggs stated, emphasizing the measured approach taken this time.

He also mentioned that stabilizing signs in volatility, open interest, and exchange activity indicate a healthy market correction. “Flushing out excess leverage isn’t a bad thing,” he added.

In contrast, Glen Goodman, a trader and author of The Crypto Trader, explained how the current lack of a compelling narrative has exacerbated the downturn. In past cycles, Bitcoin thrived on collective beliefs as a global currency or digital gold, yet today it faces challenges from shifting macroeconomic pressures and volatility observed in tech stocks.

For further insights, listen to the complete episode on Cointelegraph’s Podcasts, available on Apple Podcasts and Spotify.