Bitcoin is heading for its worst monthly performance since 2022 as a massive crypto selloff drags the entire digital asset market downward. The world’s largest cryptocurrency has dropped below $86,000, hitting a seven-month low and wiping out all gains made this year.
Additionally, the downturn has spread across the sector, with Ether falling to a four-month low and contributing to a broader collapse in investor confidence. Over the past six weeks, nearly $1.2 trillion has been erased from the total value of global cryptocurrencies, signalling intense market pressure.
Read more : Trump’s pro-crypto stance ignites bitcoin’s record surge –
Analysts say the sharp decline reflects a dramatic shift in investor sentiment, as appetite for risk continues to weaken across financial markets. Rising volatility and falling tech stocks have further fueled concerns, especially with expectations of near-term US interest rate cuts fading rapidly.
Moreover, the crypto slump marks a stark reversal from October, when Bitcoin briefly surged above $120,000 following favourable regulatory developments. The market has struggled to recover from last month’s historic crash, which triggered more than $19 billion in liquidations and rattled investors worldwide.
Read more : Pakistan launches first govt-led Bitcoin reserve
According to research firm CryptoQuant, current Bitcoin market conditions are the most bearish seen since the beginning of the bull cycle in early 2023. Their assessment suggests that the latest demand wave may have already peaked, adding more uncertainty to the months ahead.
The plunge has also hit crypto-linked stocks, with MicroStrategy shares falling to a one-year low as the impact spills beyond digital tokens. This widening fallout shows how deeply the ongoing crash is affecting both crypto holders and traditional markets connected to the sector.