1. Stricter Regulations
The UK's Financial Conduct Authority (FCA) is planning to ban retail investors from using credit cards and borrowed money to buy cryptocurrencies. This is meant to prevent scams and protect consumers from misleading or risky investments.
2. Economic Slowdown
The U.S. economy reported weaker-than-expected GDP growth in Q1 2025. This created fear among investors, prompting them to pull out of risky assets like crypto.
3. Major Institutional Losses
MicroStrategy (now rebranded as Strategy) reported a massive unrealized loss of $5.91 billion on its Bitcoin holdings. This has shaken confidence in large-scale crypto investments.
4. Political Uncertainty
Despite high hopes, the first 100 days of Donald Trump's second term haven't sparked a crypto boom. Bitcoin has dropped over approximately 10% since his return, and concerns over meme coins and trade policies have dampened sentiment.
5. Market Scandals
In Argentina, the $LIBRA crypto project collapsed after being promoted by President Javier Milei. Many investors lost money, and the scandal has hurt overall trust in the crypto market.
Current Market Snapshot
Bitcoin (BTC): Around $95800 (down from its peak of $109,000+ earlier this year)
Total Crypto Market Cap: Roughly $2.91 trillion
What Lies Ahead?
Although the market is down now, crypto has a history of bouncing back. Investors are advised to stay calm, avoid panic selling, stay informed, and think long-term.
Would you like help planning your next move or exploring which coins might recover fastest?