If you haven't noticed yet, the crypto market is in free fall, but why?

On the 6th of October 2025, Bitcoin made its very infamous all time high of $126,230.09 per Bitcoin. When Bitcoin was at this level, it was the talk of the market, everyone wanted a piece of it. Just a few weeks before that, Ethereum made all-time highs as well at a price of $4,954.19 which was just as big of a story.

Those all-time highs were very soon followed by huge drops in price on both coins and in the crypto market as a whole. It was also around this time where many traders started to lose hope. That hope came back slightly in December and January where there was a period of an uptrend, but it wasnt a very strong one at all, and it almost classified as a consolidation (sideways movement, not going up or down).

But, yet again that hope was broken late January with Ethereum breaking below $2,500 and Bitcoin breaking below $80,000.

This exact pattern has been repeating itself over and over. In 2020-2023 we saw this too, but why is that? So, in Bitcoin there is something called the “halving”, it is essentially the value of a mined block in Bitcoin that gets cut in half. It was cut in 2012, 2016, 2020 and 2024. It will be cut again in 2028. Almost every time this happens, Bitcoin creates new all-time highs immediately after, then it crashes before repeating the cycle again.

There is one key difference between this crash, it seems unnatural. It has dropped a lot more than any of the other crashes that we saw previously.

This creates two very strong sides in the market. One side is the bears who strongly believe that Bitcoin will go to zero, and on the other side you have the bulls who just as strongly believe it will still create new all-time highs eventually. The bulls are using this as an opportunity to buy as much of these coins as possible, so that if they go to all-time highs again, the bulls will make A LOT of money.

Now, this is an extremely risky cycle, because as I said, it has dropped way more than previous cycles and has not shown any signs of slowing down yet. It is very important that you study before buying and not over leverage. Over leveraging is the number one factor why traders lose everything in these markets. If you stick to just normal 1:1 leverage, you wont get wiped out as easily.