The cryptocurrency market has been hit by a fresh wave of panic, with the flagship asset Bitcoin slipping beneath the $100,000 (£76,800) barrier and Ethereum now officially in the red for 2025. The shift to extreme fear among traders comes as leveraged liquidations mount and risk-off sentiment sweeps across digital asset markets.
Bitcoin And Ethereum Tumble
Bitcoin’s price briefly dipped to around $98,000 (£75,000) on 22 June 2025, marking a rare retreat under the $100,000 (£76,800) mark after sustaining higher levels earlier in the year. The fall has intensified concerns that Bitcoin could slide further if key support zones continue to weaken.
Ethereum also suffered a sharp drop, falling below $3,600 (£2,700) after a one-day decline of about 7%. Analysts now report that it has erased all of its gains for 2025, signalling a full-year retreat in performance. At the same time, global crypto liquidations have surged, with more than $1 billion (£768 million) in positions wiped out in recent days.
The widely watched Crypto Fear & Greed Index has also plunged into the ‘extreme fear’ category, reaching a reading near 21 — a level typically associated with heightened anxiety and limited investor confidence.
Factors Driving The Sell-Off
Several key forces are underpinning the sell-off in the crypto market. On the macroeconomic front, rising geopolitical tensions and signs of a global risk-off rotation have undermined investor appetite for digital assets.
Technically, Bitcoin faces a major support zone near $100,000 (£76,800), and failure to hold that level has triggered concerns of a deeper correction. For Ethereum, growing liquidations and the loss of momentum in the wider altcoin market have intensified selling pressure.
The increased use of leverage in crypto trades has also amplified the decline. Once prices begin to fall, forced selling through margin calls and liquidations can accelerate the downturn, leading to a cascading effect that sweeps across exchanges.
Ripple Effect Across Global Markets
The sharp slide in major cryptocurrencies has not been limited to the blockchain sector. Traditional risk assets have also felt the strain, with technology stocks and growth-oriented equities showing signs of weakness.
Market analysts warn of a possible ‘Crypto Crash 2.0’ scenario as the digital-asset downturn intersects with broader economic turbulence. The contagion suggests that investors may be reallocating capital away from higher-risk categories, including crypto, toward more stable assets as volatility intensifies.
UK Perspective: Tightening Rules And Investor Caution
From a UK perspective, the downturn in crypto assets arrives amid growing regulatory and tax scrutiny. HM Revenue & Customs (HMRC) has stepped up oversight of crypto trading, token swaps and airdrops, classifying many of these activities as taxable events even when assets are not converted into sterling.
For British retail investors, Ethereum’s reversal of its 2025 gains raises new questions about tax reporting and how capital losses can offset earlier profits. Institutional traders are likewise approaching the market cautiously, as volatility and evolving Financial Conduct Authority (FCA) requirements make long-term positioning more complex.
Market Sentiment And What’s Next
Sentiment remains fragile. The low reading on the Crypto Fear & Greed Index indicates a market nearing capitulation but offers no guarantee of recovery. Some analysts predict further downside unless macroeconomic conditions improve and key technical levels are regained. Others suggest that the current weakness could mark a turning point if the market stabilises.
For now, investors continue to watch Bitcoin’s ability to hold above the $100,000 (£76,800) threshold and Ethereum’s performance near its current support zones as indicators of whether the market can steady itself before the next major move.