Bitcoin slid below $80,000 on a thin weekend, falling roughly 40% from its 2025 peak. The drop marks the longest monthly losing streak since 2018 and signals a deeper erosion of demand. Market depth has slipped more than 30% from October, echoing the liquidity hit after the FTX collapse.

Unlike the October crash, no cascading liquidations or systemic shock triggered the slide. Instead, fading buyers, thin liquidity, and a token detached from broader markets drove the fall. Spot ETFs continue to bleed, and institutional treasuries have pulled back after last year’s stock‑price bubbles, further draining top‑end demand.

Analysts warn that Bitcoin may be 25% through its current cycle, with the worst drawdown typically occurring around the 50% mark. Kaiko’s data suggests a six‑to‑nine‑month recovery window, but volumes could stay muted as investors await a meaningful rebound and clearer macro signals.

With AI stocks surging and precious metals rallying, capital is shifting away from crypto. Investors now face a prolonged correction, and the next phase will hinge on whether Bitcoin can regain liquidity and attract new buyers. Market watchers should monitor ETF flows and institutional positions for early signs of a turnaround.