Crypto News Today: Crypto Market Cap Drops to Eight-Month Low as Analysts Warn of Further Downside

The global cryptocurrency market capitalization has fallen to its lowest level in eight months, wiping out much of 2025’s gains and reinforcing concerns that the market has entered a deeper corrective phase.

According to data from CoinGecko, total crypto market value slipped to $2.93 trillion in late Thursday trading — the weakest level since April. The decline marks a sharp reversal from the market’s early-October peak near $4.4 trillion, representing a drawdown of roughly 33% from all-time highs.

Yearly Gains Erased as Market Returns to Range Lows

The pullback has erased nearly all of this year’s gains, with total crypto market capitalization now down about 14% year-to-date. After bottoming near $2.5 trillion in April, the market staged a strong recovery through mid-year before stalling and rolling over in recent weeks.

Since March 2024, crypto market cap has largely traded within a broad range — and the latest move has pushed valuations back toward the middle of that long-standing consolidation zone.

Bank of Japan Rate Hike Adds to Global Macro Pressure

Macro uncertainty remains a key driver of risk aversion. On Friday, the Bank of Japan raised interest rates to 0.75%, the highest level in three decades, adding another tightening signal at a time when global liquidity conditions remain fragile.

MN Fund co-founder Michaël van de Poppe warned ahead of the decision that short-term downside risk remained elevated.

“Wouldn’t be surprised if BTC continues to cascade and gets itself into a form of capitulation in the next 24 hours, as the trend clearly is down,” van de Poppe said, adding that altcoins could see 10%–20% drawdowns before stabilizing.

Despite those concerns, Bitcoin briefly rebounded more than 2%, underscoring the market’s heightened volatility and conflicting macro signals.

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