Investor fear in the crypto market has intensified to a degree not seen since the collapse of the Terra Luna ecosystem in mid-2022, driven by a brutal, macro-led selloff.
Bitcoin’s price fell to a 15-month low of $60,255 on Thursday, marking a 52.2% decline from its October 2025 all-time high of $126,080, according to CoinGecko.
Terra Luna was a crypto ecosystem whose collapse in May 2022, after its algorithmic stablecoin lost its dollar peg, triggered one of the market’s sharpest confidence shocks on record.
“Looking back at this drawdown, it vividly reflects a core reality: in an environment where broad liquidity has not expanded meaningfully, global assets are being governed by the same tightening financing conditions and risk-aversion logic,” Tim Sun, senior researcher at HashKey Group, told Decrypt.
Macroeconomic factors “play an outsized role in this downturn, as crypto continues to trade with strong correlation to equities and sensitivity to monetary policy signals.” Nick Ruck, director of LVRG Research, told Decrypt.
“The primary driver is the risk-off wave from tech/AI sector fears,” Andri Fauzan Adziima, research lead at Bitrue, told Decrypt. “Investors increasingly doubt the sustainability of Big Tech's massive AI capex.”
