Cryptocurrency markets have lost billions of dollars in recent times, as the sharp decline in global markets has worsened. Here are the most important figures and analysis based on the latest data available until January 2025:
### 1. **Severe losses in market value**
- **$370 billion**: The crypto market lost this amount in less than 3 trading sessions in early January 2025, as the market cap fell from **$3.61 trillion** (peak of the year on January 6) to **$3.26 trillion** by January 8.
- **$250 billion**: Losses recorded in just **24 hours** on January 8, 2025, with Bitcoin falling from $103,000 to less than $96,000, affecting other coins such as Cardano and Dogecoin, which lost more than 10% on the same day.
### 2. **Major Currencies Performance**
- **Bitcoin (BTC)**: It fell from $68,000 in November 2024 to **$15,000** by December 2024 (76.6% loss), then rose again to $102,000 on January 28, 2025 before falling again to $96,000.
- **Ethereum (ETH)**: It fell from $4,732 to $1,183 (75% loss), then stabilized around $3,200 with sharp fluctuations.
- **Meme coins (like Dogecoin):** Some of them lost more than **30%** in a single day.
### 3. **Factors affecting the decline**
**US Dollar Index Rise**: It reached its highest levels in two years, reducing the appeal of riskier assets such as crypto.
**Monetary Policy Expectations**: Investors fear slower pace of Fed rate cuts.
- **Geopolitical turmoil**: such as Donald Trump's statements about annexing Canada, which increased instability in the markets.
**Profit taking**: Especially when Bitcoin approaches strong resistance levels (like $103k).
### 4. **Repercussions of platform bankruptcy**
The bankruptcy of the **FTX** exchange in December 2024 negatively affected market confidence, with **260 million cryptocurrencies** withdrawn from the exchange, resulting in a combined loss of **$2.396 trillion** by the end of 2024.
### 5. **Recent Volatility and Partial Recovery**
The markets saw a slight recovery on January 28, 2025, with crypto market cap rising **4.7%** ($91 billion gain), but it is still far from recouping earlier losses. For example, Bitcoin’s price rose to **$102,952** that day, but later retreated.
### Conclusion
Crypto market losses have combined macroeconomic factors (such as interest rates and dollar strength) and special events (platform bankruptcies), resulting in cumulative losses estimated at hundreds of billions of dollars in January 2025. Despite the temporary recovery, extreme volatility remains a major feature of this market.
