CRYPTO : WORST SCENARIO

The spectacular BTC rally in 2024 peaked in December with a record of $106,000, driven by the optimism triggered by the election of Donald Trump.

But just a few weeks later, the market shifted into a severe correction.

From the inauguration of the American president in January 2025, BTC began to decline and lost 18% of its value, while the total market capitalization of crypto fell by 25%.

This wave of selling was amplified by a series of events that accelerated the panic:

- Massive outflows from exchange-traded crypto products (ETP): $4.6 billion was withdrawn from crypto investment funds, indicating a rapid disengagement from institutional investors;

- Record liquidations in the spot market: on March 3, over $1 billion in positions were liquidated in a single day,

- Profit-taking after Trump's victory

This scenario echoes other past corrections, but analysts remain divided on the actual severity of the situation.

While this decline worries novice investors, industry veterans downplay the situation. Lucien Bourdon reminds us that the market has already experienced much more challenging times.

He cites the collapse of Mt. Gox in 2014, one of the most significant episodes in BTC's history.

At that time, the disappearance of 850,000 BTC during a hack triggered a staggering 85% drop in the price of BTC and wiped out 70% of trading volumes.

Unlike today, the crypto market was embryonic, lacking institutional support and a structured regulatory framework.

Today, despite the volatility, the situation is quite different. Brett Reeves highlights that regulation and the rise of institutional products have profoundly changed the game.