• Bitcoin’s monthly drop hits 21.2%, pushing 12-week losses to 23.2% as Fed rate cut hopes fade.

• Risk-off sentiment and deleveraging are affecting multiple asset classes, not just cryptocurrency.

• Long-term holders have sold a record 815,000 BTC in 30 days, per CryptoQuant data, while ETFs see $870 million outflows.

Explore Bitcoin’s 2025 decline: Binance CEO Richard Teng views it as typical volatility, while critics like Peter Schiff warn of deeper losses. Stay informed on market cycles and expert insights—read now for strategic investment tips.

What is Causing Bitcoin’s Decline in 2025?

Bitcoin’s decline in 2025 stems from a combination of fading expectations for a Federal Reserve rate cut in December, widespread sell-offs in risk assets, and accelerated profit-taking by long-term holders. The cryptocurrency has plummeted 21.2% this month alone, reaching a six-month low of $81,869 as of recent updates from Coingecko. This volatility mirrors patterns seen in traditional markets, with broader deleveraging amplifying the downturn across equities and commodities.

How Are Experts Responding to Bitcoin’s Current Volatility?

Binance CEO Richard Teng has emphasized that Bitcoin’s decline in 2025 aligns with the natural cycles of major asset classes, including stocks and commodities. “There are always different cycles and volatility,” Teng stated, noting that the current risk-off environment is rippling through various markets. He highlighted that Bitcoin is trading more than double its levels from early 2024, when institutions like BlackRock began launching crypto investment products, underscoring the sector’s long-term resilience.

Over the past five years, the cryptocurrency market has delivered strong performance, Teng added, making profit-taking during consolidation periods expected and healthy. This breather allows the industry to reassess priorities and strengthen fundamentals. Binance co-founder Changpeng Zhao (CZ) echoed this sentiment, remarking that every market dip prompts doomsday predictions, yet time and trends persist.

In contrast, prominent critics like Peter Schiff, chief of Euro Pacific Asset Management, have taken a sharply bearish stance. Schiff dismissed Bitcoin as a flawed medium of exchange and an inferior store of value, suggesting even proponents like Cathie Wood acknowledge stablecoins’ advantages. He advocated for tokenized gold as the superior alternative and warned of “serious consequences” if Bitcoin breaches $88,000, urging investors to exit promptly.

Schiff’s analysis points to Bitcoin’s underperformance in 2025, down 5% year-to-date compared to Nasdaq’s 17% gain and gold’s 53% surge. On-chain metrics from Glassnode and CryptoQuant reveal long-term holders offloading over 815,000 BTC in the last 30 days—a record since January 2024—contributing to a $1 trillion drop in overall crypto market capitalization, or -24%. Dave Rosenberg, founder of Rosenberg Research, declared Bitcoin in bear market territory after a 20% monthly fall, citing ETF outflows of nearly $870 million as a key indicator of waning institutional interest.

Strategy, a leading Bitcoin-related stock, has declined 35% year-to-date and 56% from its November 2024 peak, further illustrating the sector’s challenges. Schiff contended that Bitcoin’s narrative as the top-performing asset has unraveled, with its nearly 30% drop from all-time highs catching even optimistic investors off guard from last year’s $100,000 celebrations. He predicts 2026 could bring even steeper declines, though he reserves full vindication until further drops materialize.

Frequently Asked Questions

What Does Binance CEO Richard Teng Say About Bitcoin’s 2025 Performance?

Richard Teng views Bitcoin’s 2025 decline as par for the course in volatile asset classes, emphasizing its more than doubling from early 2024 levels despite recent losses. He sees the current consolidation as beneficial, allowing the crypto sector to pause and realign after five years of robust growth, with profit-taking being a natural response.

Is Bitcoin Entering a Long-Term Bear Market According to Market Analysts?

Analysts like Dave Rosenberg confirm Bitcoin has entered bear market territory with a 20% drop in under a month, driven by ETF outflows and holder sell-offs. While critics like Peter Schiff predict no future for BTC, proponents highlight its historical recovery patterns, advising caution amid ongoing deleveraging across risk assets.

Key Takeaways

• Volatility is Normal: Bitcoin’s 21.2% monthly decline mirrors broader market cycles, as noted by Binance’s Richard Teng, and does not signal the end of its growth trajectory.
• Profit-Taking Accelerates: Record sales by long-term holders, exceeding 815,000 BTC per CryptoQuant, have deepened the downturn, alongside $870 million in ETF outflows reported by market trackers.
• Contrasting Views Persist: While optimists see consolidation as healthy, bears like Peter Schiff warn of further losses below $88,000, urging diversification into assets like tokenized gold.

Conclusion

In summary, Bitcoin’s decline in 2025 has sparked debate, with Binance CEO Richard Teng framing it as typical volatility and a chance for industry reflection, contrasted by Peter Schiff’s stark warnings of structural flaws and impending deeper losses. Supported by on-chain data from Glassnode and CryptoQuant, the market’s 24% capitalization drop underscores current pressures from risk aversion and outflows. As institutional adoption from firms like BlackRock continues to evolve, investors should monitor these cycles closely, positioning for potential rebounds while heeding expert cautions for informed decision-making in the volatile crypto landscape.