Bitcoin Downturn Calmer Than 2022, Leaders Suggest Amid Volatility

• Despite sharp price swings, the 2025 crypto downturn shows resilient fundamentals unlike 2022’s systemic failures.

• October’s historic $19 billion liquidation event exceeded prior crashes, yet macro support aids recovery.

• Bitcoin dropped 14% to $104,782 while Ethereum fell 12.2%, with altcoins like AVAX declining up to 70% before rebounds.

Discover why the 2025 crypto downturn feels calmer than 2022: expert insights on volatility, liquidations, and market resilience. Analyze liquidity shifts and prepare for stabilization—read now for essential crypto updates.

What makes the 2025 crypto downturn easier than 2022?

The 2025 crypto downturn involves intense volatility and significant liquidations, but it lacks the cascading institutional failures of 2022. Industry leaders like Dragonfly Managing Partner Haseeb Qureshi describe it as the “easiest bear market” due to functioning DeFi protocols and no major exchange collapses. While prices have declined, network health and transaction volumes remain strong, supporting a more navigable phase.

Why did October 2025 trigger massive liquidations in crypto?

The October 2025 liquidation event marked a historic low for the crypto market, with over $19 billion in leveraged positions liquidated in just 24 hours on October 10. This surpassed the February 2025 crash by nine times and the March 2020 meltdown by 109 times, according to market data from CoinMarketCap. The plunge was exacerbated by U.S. President Donald Trump’s announcement of a 100% tariff on Chinese imports and threats of export controls on critical software, leading to rapid liquidity evaporation and forced position unwinding. Bitcoin plummeted 14% from its all-time high above $126,000 to $104,782.88, Ethereum dropped 12.2% to $3,436.29, and altcoins faced steeper losses—HYPE declined 54%, DOGE 62%, and AVAX 70%—before partial recoveries. Haseeb Qureshi, in a response on X, emphasized that despite these shocks, the absence of 2022-style domino effects like the falls of Luna, 3AC, FTX, Genesis, BlockFi, Axie, and NFTs makes the current environment far more stable.

The debate gained traction on X after AltLayer Founder YQ expressed doubts about Web3’s value, noting that many crypto veterans have exited the space. YQ highlighted concerns over weak liquidity, fading narratives, and manipulation in small-cap tokens, questioning whether projects truly create real-world value or if only speculative assets like memes and prediction markets endure.

“Since the second half of last year, a lot of my friends(OGs in crypto) left crypto, as they started to doubt their original belief in crypto/blockchain/Web3 like do projects really create value to the world, what’s profit market fit, only speculations like meme/perp/prediction projects survive in this cycle, do web3 projects like infra/social really have values?,” YQ stated.

Haseeb Qureshi countered by recalling 2022’s chaos, including bank failures, stablecoin depegging, and regulatory pressures, arguing the 2025 downturn feels “breezy” in comparison. He stressed that prices may have dropped, but “fundamentals are great” and “crypto is working,” pointing to robust DeFi operations and integration with traditional finance.

This perspective aligns with broader market resilience, as transaction volumes rise and networks demonstrate improved health amid volatility. However, some community members on X debate whether this constitutes a true bear market or an extended correction, especially with traditional assets like gold and stocks reaching records.

Frequently Asked Questions

Is the 2025 crypto downturn a full bear market like 2022?

The 2025 crypto downturn qualifies as a bear phase due to over 5% daily market cap declines and historic liquidations, but it differs from 2022 by avoiding widespread institutional collapses and maintaining strong DeFi functionality, as noted by experts like Haseeb Qureshi.

How is Bitcoin holding up during the 2025 crypto volatility?

Bitcoin has experienced significant pressure in the 2025 downturn, trading at $97,425.65 after a 4.60% daily drop from its October peak above $126,000. Despite the 14% plunge to $104,782, ongoing liquidity improvements and macro support suggest potential stabilization ahead.

Crypto volatility remains high, but industry leaders say today’s downturn is far calmer than 2022 as traders brace for shifting liquidity signals.

Key Highlights

• Despite sharp swings and historic liquidations, experts say crypto fundamentals remain solid, making the 2025 downturn easier to navigate than 2022.
• October’s $19B wipeout shook traders, yet analysts highlight that strong liquidity signals and macro support could stabilize the market in coming months.
• Top voices like Haseeb emphasize that market volatility is high, but decisive liquidity moves and policy shifts will guide crypto’s next trends.

Key Takeaways

• Resilient Fundamentals: Unlike 2022’s collapses, 2025’s downturn preserves DeFi protocol strength and network activity, enabling quicker recovery.
• Liquidation Impact: The $19 billion October event, driven by tariffs and policy threats, caused sharp drops but no systemic failures.
• Expert Optimism: Leaders like Haseeb Qureshi urge focus on working crypto infrastructure over short-term price dips to capitalize on upcoming trends.

Conclusion

The 2025 crypto downturn, marked by intense volatility and the largest liquidation event in history, contrasts sharply with 2022’s devastating chain reactions through its emphasis on solid crypto fundamentals and emerging liquidity support. As Bitcoin and Ethereum navigate these pressures, industry insights from figures like Haseeb Qureshi underscore a path toward stability. Investors should monitor policy shifts and macro indicators closely to position for the next bullish phase in this evolving landscape.

The crypto market is currently facing a sharp downturn, yet industry leaders insist the current phase remains largely manageable compared to that of 2022. The latest debate unfolded on X after Dragonfly Managing Partner Haseeb Qureshi said the ongoing bear phase feels “the easiest bear market I’ve ever seen.” His remarks came as traders assess heavy losses following October’s historic liquidation wave. 

October liquidations shook traders’ confidence

The market took a historic hit last month. More than $19 billion in leveraged positions vanished within 24 hours on October 10. Analysts said this was the largest wipeout in crypto history. Moreover, the event exceeded the February 2025 crash by nine times. It also exceeded the March 2020 meltdown by 109 times. 

The sharp plunge followed U.S. President Donald Trump’s 100% tariff on Chinese imports. His threat to impose export controls on critical software also triggered panic selling. Liquidity dropped fast and forced traders to unwind positions.

Bitcoin fell to $104,782.88 during the October 10–11 window. It dropped more than 14% from its recent high of $122,574.46. The asset had reached an all-time high above $126,000 just before the crash. Ether dropped 12.2% to a low of $3,436.29. Altcoins saw heavier damage. HYPE lost 54%. DOGE dropped 62%. AVAX fell 70% before posting mild recoveries. 

Fundamentals are still solid

Showing his point-of-view, Haseeb offered a surprisingly optimistic take on the current market downturn, stating, “Prices have gone down,” but “Fundamentals are great. Crypto is working.” His confidence hinges on the underlying strength of decentralized finance (DeFi) protocols, which he believes continue to function effectively despite price volatility. 

This remark also reflects a broader narrative of resilience, as Haseeb contrasts the current climate with the existential threats faced during the 2022 bear market, including regulatory crackdowns and stablecoin depegging. By emphasizing that “fundamentals are great,” he points to improved network health, increased transaction volumes, and the integration of crypto into traditional finance as evidence of progress. 

However, his casual dismissal of price drops has sparked debate, with some X users questioning whether the market is truly in a bear phase or merely experiencing a prolonged correction, especially as traditional assets like gold and stocks hit record highs. 

Market conditions remain tight

Moreover, the broader market remains under pressure today. According to CoinMarketCap, the global crypto market cap stands at $3.28 trillion. It dropped 5.08% in the last 24 hours. Trading volumes climbed 32.48% to $229.06 billion as volatility pushed activity higher. 

Market data further shows Bitcoin trades at $97,425.65, falling 4.60% in the last day. Ethereum, on the other hand, trades at $3,176.81 after an 8.92% daily drop.

Also Read: Bitcoin to Outperform Gold by 2035: Michael Saylor

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TAGGED:Cryptocurrency