Crypto Market Loses More Than Half Its Value in Eight Months

The cryptocurrency market has lost more than half of its value in just eight months, according to research by The Kobeissi Letter.

The downturn equates to an average loss of about $8.8 billion in market value each day over the 261-day period.

The report said the total crypto market capitalization peaked at a record $4.3 trillion on Oct. 6, 2025. About 261 days later, the market was valued at roughly $2 trillion, representing a 54 percent decline, Brian Sozzi reported for Yahoo Finance.

According to the analysis, the downturn equates to an average loss of about $8.8 billion in market value each day over the 261-day period.

Analysts said the correction reflects concerns over elevated valuations, rising geopolitical tensions and growing sensitivity to interest-rate expectations.

In separate interviews on Yahoo Finance's Power Players with Brian Sozzi podcast, Coinbase co-founder and CEO Brian Armstrong and Binance founder Changpeng Zhao discussed the market outlook.

"Nobody knows for sure," Armstrong said. "But if you look at past trends and fear-and-greed indexes, I think we bottomed at around $60,000 for bitcoin."

He said potential catalysts for growth include favorable legislation, improved market structure and capital rotating back into crypto after artificial intelligence companies complete public listings.

Zhao expressed confidence that the industry's long-term growth remains intact.

"The cycles, the winters will always come and go. But the industry is growing. $60,000 for bitcoin is really low," Zhao said.