Crypto Crashes This Week, With Some Plummeting More Than 80%!

Jakarta, Pintu News – The global cryptocurrency market has faced major turmoil in recent months, with significant price drops on several major crypto assets since January 2025, when US President Donald Trump took office.

Based on circulating price reports, Bitcoin (BTC) saw a decline of 18%, while Ethereum (ETH) fell by 10%, and Ripple (XRP) plummeted by around 42% during this period. These declines illustrate just how volatile the crypto market has become, with various macroeconomic factors playing a role in exacerbating the situation.

Key Factors Affecting Crypto’s Decline

The recent high volatility of the cryptocurrency market is largely due to global macroeconomic uncertainty. Interest rate hikes by central banks around the world, including the US Federal Reserve, have led to selling pressure in the crypto market.

In addition, factors such as risk aversion and investor rotation into traditional assets such as stocks and bonds are also worsening the situation for risky assets such as Bitcoin (BTC) and Ethereum (ETH).

In October, the crypto market experienced one of the biggest declines in its history. During that period, the price of Bitcoin (BTC) fell from more than $122,000 to $104,000, while many other altcoins also took a hit.

This event, known as the “flash crash”, showed how vulnerable the crypto market is to limited liquidity and high leverage. Analysts warn that a similar situation could repeat itself if the macroeconomic situation continues to deteriorate.

Also read: XRP is predicted to surpass ETH in 2026, YoungHoon Kim shares his opinion!

Influence of Interest Rate and Market Sentiment

The “risk-off” market sentiment is one of the main factors affecting crypto prices. When interest rates increase, the cost of borrowing also increases, which reduces investors’ interest in investing in high-risk assets like cryptocurrencies. Higher interest rate decisions from central banks trigger a shift to safer assets, which causes the crypto market to lose its appeal.

In addition, other memecoins and altcoins, such as $TRUMP, PEPE, and APT, experienced sharp declines as they were affected more by market sentiment compared to fundamental factors. Under volatile market conditions, these tokens tend to fluctuate more, causing more significant losses for speculative investors.

Also read: 3 Bitcoin Price Predictions in 2026 According to Bitwise

Liquidation and Risky Trading

The crypto market has also recently faced a major wave of liquidation, with more than USD 570 million in long positions forced to close in a single day on December 15, 2025.

This incident shows how high leverage and thin liquidity conditions can exacerbate price drops in a short period of time. During this period, Bitcoin (BTC) and Ethereum (ETH) experienced sharp declines, registering a drop of more than 4% in a single day.

During the liquidation period, many high-risk positions are forcibly closed, creating a domino effect that exacerbates the situation. Analysts note that in times like these, price movements do not always reflect the fundamentals of the asset, but are more influenced by technical factors and automated sell-offs triggered by trading algorithms.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• CCN. Bitcoin Down 18%, XRP Slide 42%, Ethereum Plunge 10% Since Trump Took Office – Here’s How Much Crypto Has Fallen. Accessed December 20, 2025
• Featured Image: Generated by AI