Bitcoin has dropped sharply toward the 80,000‑dollar mark, erasing its year-to-date gains and putting fresh pressure on companies and funds that hold large amounts of crypto on their balance sheets. The move reflects a broader “risk‑off” mood driven by worries about expensive tech stocks, volatile markets, and uncertainty over US interest rates.
What’s happening to Bitcoin and Ether
Bitcoin recently closed around 80,553 dollars, roughly 12% lower over the past week, after having traded above 120,000 dollars as recently as October. Ether has also slumped, falling about 19% so far in 2025 and hitting a four‑month low alongside Bitcoin.
Crypto markets have shed roughly 1.2 trillion dollars in value in just six weeks, underlining how quickly sentiment has reversed from the earlier rally. Rising volatility and selling in high‑growth, AI‑focused stocks have spilled over into digital assets, which are often treated as a barometer for risk appetite.
Pressure on corporate and ETF holders
Listed companies and institutions together hold about 4% of all Bitcoin and 3.1% of all Ether in circulation, so the slide directly hits their reported asset values. Standard Chartered estimates that if Bitcoin stays below roughly 90,000 dollars, around half of corporate Bitcoin treasuries could be “underwater,” with holdings worth less than their purchase price.
Analysts note that 80,000 dollars is also a critical threshold because it is close to the average price at which exchange‑traded funds have accumulated Bitcoin, so a sustained break below this level could trigger more redemptions and forced selling. Outflows from spot Bitcoin funds have already picked up, removing a steady source of demand that previously helped absorb volatility.
Impact on crypto‑linked stocks
Shares of crypto treasury and crypto‑exposed companies have sold off hard as their Bitcoin‑linked balance sheets and business models come under stress. One central US‑listed corporate Bitcoin accumulator, referred to in reports as the largest in its group, has seen its stock fall about 61% since July and is now down nearly 40% for the year.
Analysts at JPMorgan Chase & Co. have warned that the company could be removed from key MSCI equity indexes, which would force index‑tracking funds to sell and could deepen the decline. In Japan, Metaplanet has dropped roughly 80% from its June peak, highlighting how leveraged some corporate strategies were to the Bitcoin rally.
Macro and market‑structure drivers
The sell‑off is unfolding amid uncertainty over near‑term US interest‑rate decisions, which have made investors more cautious about highly valued and speculative assets. After a record one‑day liquidation of about 19 billion dollars in leveraged positions last month, sentiment remains fragile, and many smaller investors have stayed away from the market.
Market‑structure factors are amplifying the move: options positioning around key strike levels and “short gamma” hedging by market‑making firms can force additional selling as prices fall, accelerating downward moves once support breaks. At the same time, thinner liquidity and sustained outflows from significant crypto funds mean it now takes less capital to push prices sharply in either direction.
How low could it go?
Some analysts point to previous Bitcoin bear markets in 2018 and 2022, when peak‑to‑trough declines of 75–80% were part of the cycle. If a similar drawdown were to occur from this cycle’s highs, projections suggest Bitcoin could, in a severe scenario, fall toward the mid‑20,000‑dollar range.
Others highlight nearby technical zones around 83,000–84,000 dollars and then 69,000–72,000 dollars as potential support if selling continues. While no one can predict the exact bottom, the combination of macro uncertainty, ETF outflows, and stressed corporate holders suggests volatility is likely to remain elevated, with both downside risk and sharp relief rallies possible.
