Cryptocurrency Market Sees Sharp Decline, Wiping Out Most Yearly Gains

# Cryptocurrency Market Plunges, Erasing Yearly Gains in Just Over a Month

The cryptocurrency market has witnessed a dramatic reversal of fortunes, with nearly all the year-to-date gains wiped out in just over a month. According to data from CoinGecko, the global cryptocurrency market cap reached an all-time high of approximately $4.4 trillion on October 6 but has since retreated by about 20%, leaving only a meager 2.5% gain for the year.

## Market Collapse and Forced Liquidations

In the days following the record high, forced liquidations totaling around $19 billion shook the market, triggering a wave of selling that eroded investor confidence. The collapse has been particularly stark, with the total value of digital assets now standing below levels seen at the start of former President Donald Trump's term in office.

## Bitcoin's Sharp Decline

Bitcoin, the flagship cryptocurrency, has fallen roughly 15% over the past month. This week, its price breached a critical support level—the 200-day moving average—a long-term indicator that had held firm since the 2022 bear market. The breach of this key technical level has raised concerns about the durability of Bitcoin's recent rally.

## Expert Insights and Market Outlook

Augustine Fan, a partner at SignalPlus, noted that the lack of new positive catalysts and persistent concerns over security and regulation are likely to keep institutional participation muted in the near term. Meanwhile, Jeff Mei, Chief Operating Officer of cryptocurrency exchange BTSE, pointed out that some of the recent declines can be attributed to market worries about artificial intelligence concept stocks being overvalued.

"If AI and tech stocks face a sell-off, Bitcoin could drop below the $100,000 mark, with altcoins potentially sliding further," Mei warned.

## Broader Market Implications

The sharp correction in cryptocurrency prices has raised broader questions about the sustainability of the recent rally. Analysts are closely watching whether the market can stabilize and regain momentum or if the current downturn signals a deeper structural issue within the digital asset space.