The cryptocurrency market just went through one of its most brutal weeks in recent memory. In just seven days, roughly $468 billion vanished from the total crypto market capitalization a staggering wipeout led almost entirely by Bitcoin's sharp decline.
Since late January (around January 29), the value of all cryptocurrencies combined has taken a massive hit dropping from levels that had looked unstoppable just months earlier. Bitcoin, the undisputed king of crypto, bore the brunt of the pain. It slid to its lowest point since Donald Trump's 2024 election victory, briefly dipping below $73,000 before bouncing around in the low-to-mid $70,000 range in the days that followed.
This wasn just a minor correction. After hitting an all-time high near $126,000 in October 2025 Bitcoin has now shed close to half its value in a matter of months. What started as a slow bleed turned into a full rout, fueled by a classic risk-off mood across global markets. Investors fled anything speculative and rushed toward traditional safe havens like gold, which has been rallying hard amid geopolitical uncertainty.
Adding fuel to the fire were rising US-Iran tensions, which pushed many to question whether Bitcoin truly deserves its nickname as digital gold When push came to shove, it didn't act like a reliable hedge instead it cratered right alongside riskier assets like tech stocks. No bids stepped in to support prices, leading to cascading liquidations and forced selling that only deepened the slide.
Even prominent voices in the space sounded shaken. Galaxy Digital CEO Mike Novogratz, once a vocal Bitcoin advocate admitted the near-religious conviction many held to "HODL" through any storm had finally broke The once-unshakable urge to hold no matter what seemed to evaporate as losses mounted.
On the more critical side, investor Michael Burry (of The Big Short fame) didn't hold back. He called Bitcoin purely speculative arguing that the drop has exposed it as having no real organic use case strong enough to halt the descent. In his view this isn't just another dip it revealing the asset's true nature when the hype fades.
For many retail and institutional holders, the pain has been real. Billions in leveraged positions got liquidated mining stocks tanked, and even Bitcoin ETFs saw significant outflows. What once felt like an unstoppable bull run post-Trump's pro-crypto signals has turned into a harsh reminder of how volatile this space can be.
The big question now is whether this is the bottom or if more downside is coming With broader markets jittery and safe-haven assets like gold shining crypto's narrative as an alternative store of value has taken a serious hit at least for the time being.
One thing is clear: the "Bitcoin-led rout" has wiped out enormous paper wealth in record time, leaving the community to pick up the pieces and rethink what comes next.
