Although the fundamentals of many projects have been consistently improving, 2025 has been a rough year for cryptocurrencies in general (at least in fiat terms), especially considering that this year was supposed to end another four-year cycle with all-time highs.
Even though cryptocurrencies are rapidly advancing, the vast majority of the population still wants fiat (dollars, euros, yen, etc), despite the deteriorating fundamentals of those currencies. Regardless, the value of cryptocurrencies are still measured in fiat, as well as business and living expenses.
BTC and ETH vs Crypto
Aside from coins like Bitcoin and Ethereum, 2025 has been a relatively bearish year for cryptocurrency.
This may cause you to start questioning your beliefs. Was the best strategy to hold Bitcoin, yell at shitcoiners, and avoid researching the rest of the blockchain space? Are Bitcoin and Ethereum simply the "best" cryptocurrencies? I'd be willing to accept that outcome, but I still don't think it's true, especially considering how ETFs have impacted their dollar valuations.
The Liquidation Event
And to top it all off, we had the biggest liquidation event in crypto history last week, sending many portfolios into 20-40% losses, on top of the multiple crashes that already took place earlier this year.
According to aggregated numbers, nearly $20 billion dollars worth of leveraged positions evaporated suddenly last week, liquidating 1.6 million traders, making it the biggest liquidation event in crypto history.
A Ukrainian crypto influencer apparently committed suicide in his Lamborghini shortly after the crash, and plenty of X posts indicated that some traders were signing off for good:
Despite the overall negativity, some people say this liquidation event cleared out excesses and created conditions for upward momentum, similar to what happened after the Convid crash of 2020, but only time will tell...
Lessons Learned
Perhaps the lesson here is don't gamble with leverage in the world of crypto. Simply buy spot, and hold.
Crypto is an incredibly volatile market, and trying to predict when it will rise or fall is a fool's game. Only a small percentage of traders can play it well. At the end of the day, we don't know what influential people like Donald Trump are going to tweet throughout the week.
Gold and The Reset
Meanwhile, the gold market is signalling that investors are increasingly concerned about the sustainability of sovereign debt.
The announcement of the UK's digital ID and Europe's digital Euro are more indicators that we are fast approaching a reset, at which point an alternative, permissionless financial system will become more appealing.
If debt-based fiat is indeed nearing its end, the way we value cryptocurrencies is going to change dramatically in the coming years. Perhaps cryptos will finally be valued based on their utility, rather than pure fiat speculation.
Until next time...
Despite a rough 2025 so far, Q4 isn't over yet, and you never know when things will turn around. Historically, we have seen that a lot can happen within a few weeks in the crypto space. Congrats to everyone who has managed to hold on this far, despite the dire circumstances.
Although times like these can make you doubt yourself. I have learned from previous bear markets that one must hold on despite the negative emotions. Cryptocurrency is a long-term play, and the most peaceful form of resistance we have against draconian Digital IDs and CBDCs.
If you found this article interesting, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on InLeo for more frequent updates.
Sources
Market Down Image [1]
Gold Prices [2]
Posted Using INLEO
I believe that Q4 will be full bullish and all those who lost their money can regain it back
I will always say
Spot is the best