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Crypto Market Destroyed, Market Cap Lost Half in 8 Months

The crypto industry has entered a crisis phase after losing half its value in just the past eight months. Based on chart movement data, total crypto market capitalization hit an all-time record high of $4.3 trillion on October 6, 2025. However, entering the middle of this year, precisely after 261 days, the market capitalization value shrank drastically to $2.0 trillion, representing a decline of minus 54%.

The massively evaporated asset value caused the crypto market to lose an average of minus $8.8 billion per day for 261 consecutive days. A series of geopolitical and global macro sentiments are believed to be the main triggers of this gradual collapse, starting from the new US trade tariff tensions against the European Union, the outbreak of the Iran war, to the fall of Bitcoin's price below the $60,000 level, which triggered mass panic in the derivatives market.

With a valuation loss of $2.3 trillion from its peak, the crypto industry is now in a critical condition requiring a major stimulus. Market participants and investors assess that the industry desperately needs a fundamental and fresh new narrative to restore investor confidence and reverse the downward trend that continues to erode liquidity.