Bitcoin Rebounds After Erasing All 2025 Gains Amid Market Uncertainty
By Reuters, Published on 18 November 2025
Bitcoin experienced a modest uptick on Tuesday following a sharp decline that eliminated all of its year-to-date gains in 2025. The leading cryptocurrency fell below the $90,000 mark for the first time in seven months on Monday, signaling a cautious sentiment among investors as uncertainty looms over future US interest rate movements and risk appetite across financial markets diminishes.
Bitcoin’s Recent Performance
Bitcoin’s abrupt drop from its peak of $126,000 in October has placed its value nearly 30 percent lower, with prices slipping as low as $89,286.75 before recovering slightly to $91,338.47 during European trading hours. The steep fall erased all gains made earlier this year and reflects a broader malaise affecting the cryptocurrency sector.
The total market capitalization of all cryptocurrencies has shrunk by approximately $1.2 trillion over the past six weeks, according to cryptocurrency tracker CoinGecko. Ethereum, the second-largest cryptocurrency, has similarly struggled, losing nearly 40 percent of its value from a high above $4,955 observed in August.
Underlying Causes: Interest Rates and Market Sentiment
Several factors have contributed to the recent crypto selloff. Chief among them is growing skepticism about whether the US Federal Reserve will implement further interest rate cuts, which had been anticipated by some investors as supportive for risk assets like cryptocurrencies.
Market participants describe a prevailing risk-averse mood after a prolonged period of rallying in equities and other high-risk investments. This shift in sentiment has triggered liquidations, particularly following a significant “flash crash” in October that forced approximately $19 billion in leveraged crypto positions to unwind.
Joshua Chu, co-chair of the Hong Kong Web3 Association, explained, “The cascading selloff is amplified by listed companies and institutions exiting their positions after piling in during the rally, compounding contagion risks across the market. When support thins and macro uncertainty rises, confidence can erode with remarkable speed.”
Joseph Edwards, analyst at Enigma Securities, noted that institutional investors who had speculated on favorable US crypto regulations are beginning to pull back, exacerbating outflows from crypto exchange-traded funds (ETFs) and related investment products.
Impact on Crypto-Focused Companies
Public companies engaged in cryptocurrency mining, trading, and treasury holdings have also seen their share prices decline amid the souring market sentiment. Key players such as Riot Platforms, Mara Holdings, Coinbase, and Strategy have experienced losses as a result of ongoing investor caution.
Standard Chartered provided a sobering analysis, warning that if Bitcoin sustains prices below $90,000, it could leave roughly half of the Bitcoin reserves held by publicly listed firms "underwater" — meaning the asset’s market value would be less than their acquisition costs. These companies collectively hold about 4 percent of all Bitcoin in circulation and 3.1 percent of Ethereum.
Outlook for Cryptocurrency Markets
Sentiment across crypto markets remains muted following the October selloff. Matthew Dibb, chief investment officer at Astronaut Capital, summarized the mood succinctly: “All in all, sentiment is pretty low in crypto and has been since the leverage wipeout of October.”
As traders and investors assess the evolving interest rate environment and global economic conditions, the path for cryptocurrencies like Bitcoin and Ethereum appears uncertain. With broader financial markets experiencing volatility and cautious positioning, the digital asset sector may face continued challenges in regaining momentum for the remainder of 2025. —
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