Hi. Eric here. 

Crypto markets are looking grim, and traders worry it will only get worse from here. 

After Bitcoin’s price fell below $82,000 on Friday, analysts suggest collapsing prices threaten to unearth further industry weaknesses. 

Think Terra’s collapse culminating with the implosion of FTX, and you get the idea. 

“Collapses can be swift and brutal — as 2021 to 2022 illustrated — and some traders worry we’re due for a repeat,” Molly White wrote in her newsletter on November 19.

There are several factors behind the bearish move.

Chief among them is uncertainty caused by the longest-running government shutdown in US history. 

Though economic data on the price of everyday goods and services were eventually published, the Federal Reserve is said to be flying blind as it still needs employment data. 

That uncertainty is reflected in expectations of a rate cut next month. Yesterday, CME Group’s Fed Watch tool indicated the chances of a cut were roughly 40%. Today, that’s jumped to 74%. A month ago, that figure was at 98%. 

Rate cuts usually incentivise investors to bet on riskier assets like cryptocurrencies. 

Add to that US President Donald Trump’s global trade war, actual wars in Europe and the Middle East, and concerns that the artificial intelligence bubble will pop, and it’s understandable why traders are feeling bearish.

To be sure, these factors are not isolated to crypto, but have also rippled across global markets. The S&P 500 and Nasdaq are down almost 3% and 4% respectively over the past month. 

Crypto has, however, fared worse. It has lost some 14% of its value over the past 30 days — and the fear is that it’s downhill from here.

Market seismographs are already picking up tremors. 

Tracking platform DappRadar has called it quits because the current environment made their situation “financially unsustainable," and Stream Finance has halted its operations.

Crypto stocks have plummeted. Circle and Gemini’s share prices have both tumbled over 48% over the past 30 days. 

Similarly, digital asset treasury companies — which were all the rage just months ago but whose success hinges on the expectation that the underlying assets will continue to accrue value — are down across the board.

Case in point: Bitcoin treasury pioneer Strategy is down over 40% over the past month.

The fear is that this market mayhem will be exacerbated if cryptocurrency prices continue to collapse.

The bad news? 

Analysts at Citrini Research, Kiln, and ShapeShift warned this week that volatility is likely to haunt digital assets for some time yet.

Even perennial Bitcoin boosters like BitMEX co-founder Arthur Hayes have gone bearish. 

This week, he predicted that Bitcoin could drop to $80,000 “during this period of weakness.”

Even so, there are bullish signs. Hayes said cryptocurrencies could rebound if governments start to pump more liquidity into markets.

Venture capitalists are still investing in crypto startups. They ploughed $253 million into the industry this week, DefiLlama data shows.

That put the total amount raised by the sector to over $23 billion in 2025, DefiLlama data shows.

Nevertheless, the mayhem is troubling market watchers of all stripes.

“It’s too soon to tell whether this slide is just the beginning of another crypto apocalypse, or if it’s just routine crypto volatility,” White wrote.

Ex-Olympian turned ‘El Chapo’ tapped these five blockchains to launder millions, authorities say

The US Treasury Department has indicted Ryan James Wedding, a former Canadian Olympic slalom snowboarder, for leading a massive drug trafficking enterprise. Liam Kelly reports.

Vitalik Buterin warns of two threats to Ethereum if BlackRock gets any bigger

BlackRock and other exchange-traded fund issuers have driven institutional adoption of crypto, but Ethereum co-founder Vitalik Buterin warns that their popularity could pose an existential threat to the blockchain, Pedro Solimano reports.

Kraken files for IPO after bagging a $20bn valuation

Kraken has filed to go public after months of its co-CEO dodging questions about a potential initial public offering.

Latest from DL Research

Post of the Week

DappRadar became the latest casualty of the market crash this week.

DL News is an independent news organisation that provides original, in-depth reporting on the largely misunderstood world of cryptocurrency and decentralised finance. From original stories to investigations, our journalism is accurate, honest and responsible.