Bitcoin has taken a hard hit lately. Prices dropped below $66,000, the lowest in over a year. This moment has many investors worried. From highs near $126,000 in October, it’s down almost 50%. On one tough day, it fell more than 10%.
Crypto winter is a long, cold period for prices. Think of the big drops in 2018 and 2022. Experts say we are in one now, starting early 2025. It’s not just a small dip. It’s a full freeze, driven by too much borrowed money in trades and old investors cashing out big wins.
Even good news can’t warm things up yet. The U.S. government under President Trump supports crypto. He wants America to lead in Bitcoin. New rules and orders back digital money. Bitcoin ETFs trade on stock markets for two years now, making it easy for everyday people to buy in.
But in crypto winter, positive stories don’t lift prices. Wall Street hires for crypto jobs? It won’t help right now. Big banks like Morgan Stanley push in? Long-term win, but not today. Winters end when everyone gets tired of selling.
Several things push Bitcoin down:
One analyst predicts Bitcoin could hit $38,000, a 70% drop from peaks. He looks at past super-bear markets for clues.
History shows crypto winters last about 13 months. If it began in January 2025, the end might be near. What could speed it up?
Bitcoin has survived worse. In 2022, it fell 75% from $65,500 to $16,360. Yet it bounced back strong.
Check Your Reasons: Why do you own Bitcoin? If you believe in its future, this dip might be a buy chance. Long-term fans see value now.
Limit Your Risk: Experts say keep crypto under 5% of your portfolio. It’s wild – big ups, big downs.
Have a Plan: Know when to buy or sell. One advisor sold at $80,000 for gains. Set rules ahead.
If prices are below your buy-in:
Selling at a loss? Use tax-loss harvesting. Offset gains from stocks or other wins. Leftover losses cut up to $3,000 of regular income yearly. Carry extras forward.
Watch the wash-sale rule:
This strategy rebalances your investments too.
| Year | Peak Price | Bottom Price | Drop % |
|---|---|---|---|
| 2021-2022 | $65,500 | $16,360 | 75% |
| 2017-2018 | $19,000+ | ~$3,200 | 83% |
| 2024-2025? | $126,000 | $66,000 (so far) | ~50% |
Each time, Bitcoin recovered. But only for those who stayed calm.
The phase tests true believers. Don’t chase hype or panic sell. Build a solid plan. Limit exposure. Use tools like tax harvesting. Watch for signs of thaw – economy, laws, adoption.
Bitcoin remains the top crypto. With U.S. backing and easy ETFs, its story isn’t over. Investors who learn now will win later.
Ready to navigate this? Review your portfolio today.
Stay updated on crypto trends. Subscribe for more insights.
Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity
Did you like the news you just read? Please leave a feedback to help us serve you better
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.
Robinhood HOOD Stock: Valuation Insights After Blockchain Rollout and $1B Pre-IPO Fund Launch Robinhood Markets…
In a stunning blow to the crypto world, an has been arrested for allegedly running…
With $2,000 Today – And Forever Thinking about investing $2,000 in cryptocurrency? The crypto market…
Imagine a World Where AI Handles Your Life Seamlessly Picture this: Your AI assistant books…
How , the company wants to make global money transfers fast, cheap, and reliable for…
Crypto Rally Ignites: Bitcoin Leads Charge Past $68,500 as Shorts Get Squeezed Bitcoin has made…