Crypto Had the Tailwinds, So Why Is It Still Falling?

Crypto has avoided a catastrophic blowup this year, but that hasn’t translated into a strong market. In fact, 2025 is shaping up as one of the sector’s weakest performances in years. 

Bitcoin surged through the first nine months, topping out near $126,000 in October, more than 30% higher year to date at its peak. Since then, Bitcoin is down roughly 7% for the year, a stark contrast to the S&P 500’s 15% gain and the Nasdaq’s even stronger advance.

What makes the slide harder to explain is that most of crypto’s traditional headwinds have disappeared. The regulatory pressure that defined the Biden years has eased, replaced by an openly pro-crypto White House. Institutional participation has accelerated, with spot bitcoin ETFs pulling in billions of dollars.

Yet prices keep sagging. After hovering around $90,000, bitcoin slipped again this week to roughly $86,000. The persistence of the downturn suggests something deeper.

What Does This Mean for Me?

Risk appetite is clearly alive elsewhere in markets, so crypto’s underperformance looks increasingly self-inflicted. Scams tied to crypto ATMs have already cost Americans more than $330 million this year. High-profile criminal incidents and a steady stream of low-quality speculation continue to dominate headlines. For newer investors who entered near the highs, losses of 20% to 30% have arrived faster than any promised upside.

Crypto still sells itself as a financial revolution, but until the industry distances itself from the behavior that scares cautious capital, price action may continue to lag, no matter how favorablethe policy backdrop looks.