Cryptocurrencies haven’t caught a break in the past four months.
Risk appetite has taken a U-turn lower after a marvellous mid-2025. From the conclusion of the 12-Day War to the layoffs fears in October, Digital assets looked invincible.
With Bitcoin having breached the $100,000 level, Ethereum began a shocking move higher from $2,100 to $4,950, setting new records.
Now, looking at these prices, it seems as if we were talking about some antique trends. But for those unaccustomed to the asset class, this is what Crypto does.
It stays dormant, makes you forget, then it builds momentum, and suddenly it explodes higher.
After a while, everybody talks about Crypto:
Financial revolutions, new countries adopt them as their reserve currencies, and the end of the Fiat currency system as we know it: new records are forged, headlines come by the millions, grandmothers start buying, and suddenly it’s all over.
It is typical to see corrections of 50% to 75% in this very volatile Market, as seen in the 2013, 2018, and 2021 crashes.
It wipes out doubters, leveraged traders, and dodgy projects. But the dreams of higher levels are sensical.
Following these huge corrections, barring systemic rewirings, there has been historic runs.
A reminder that Bitcoin is still up 300% since its Summer 2022 bottom – compared with Nasdaq, which is up a (still impressive) 130% in the same period. The magnitude of moves in Crypto is just that elevated, hence corrections tend to be quite brutal.
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