- Bitcoin and Ethereum hit their lowest prices in 2025 following significant investor withdrawals from ETFs, with Bitcoin dropping below $92,000 and Ethereum falling to $3,216.
- The downturn was fueled by ETF outflows, Federal Reserve signals of high interest rates, and lingering market uncertainty.
The crypto market took a sharp turn this week as Bitcoin and Ethereum, the two largest cryptocurrencies, hit their lowest price points of 2025. Investors pulled out of exchange-traded funds (ETFs) in droves, triggering a market-wide downturn.
Bitcoin Drops Below $92,000
After a record-breaking high in December 2024, Bitcoin’s meteoric rise has taken a hit. On Thursday morning, the cryptocurrency sank to $91,925 before rebounding slightly to $93,700. Over the past week, Bitcoin’s value has dipped by 3.5%.
The sell-off appears linked to massive ETF outflows. On Wednesday alone, $568.8 million exited Bitcoin ETFs—a record single-day withdrawal since December 19. The pressure is compounded by signals from the Federal Reserve that inflation may persist under President Donald Trump’s administration, with high interest rates likely to continue. Historically, Bitcoin thrives in low-interest-rate environments, making the Fed’s stance a bearish signal for the crypto market.
Ethereum Follows Suit
Ethereum also faced turbulence, briefly hitting a 2025 low of $3,216 before recovering to $3,275. Despite a 1.5% 24-hour recovery, the second-largest cryptocurrency remains down over 5% for the week. Investors withdrew $159 million from Ethereum ETFs on Wednesday, marking the largest one-day exit since the funds launched in July.
Ethereum’s ETFs haven’t garnered the same enthusiasm as Bitcoin’s, and the cryptocurrency has struggled to reclaim its 2021 all-time high of $4,878. Currently, Ethereum is trading nearly 33% below that peak.
What’s Behind the Decline?
The downturn is driven by a combination of factors:
- ETF Outflows: Significant investor withdrawals from both Bitcoin and Ethereum ETFs have placed downward pressure on prices.
- Federal Reserve Policies: Persistent inflation and high interest rates deter crypto investments, which flourish in low-rate environments.
- Market Sentiment: Uncertainty surrounding regulatory changes and technical upgrades has left investors wary.
Looking Ahead
While Bitcoin and Ethereum have weathered market storms before, the current slump underscores the volatile nature of the crypto market. With geopolitical shifts, regulatory uncertainty, and evolving macroeconomic conditions, investors must navigate an increasingly complex landscape.
For now, the market watches closely as Bitcoin stabilizes around $93,700 and Ethereum attempts to climb back from $3,275. Whether these are temporary setbacks or signs of a larger trend remains to be seen.
