The crypto class of 2025 had a rude awakening

Bitcoin and other cryptocurrencies shed over 13% of its total market value — representing about $450 billion — over the past week

A version of this story appeared in our The Roundup newsletter on February 28. Sign up here.

Hi! Eric here,

The crypto class of 2025 had a rude awakening, as Bitcoin and other cryptocurrencies shed over 13% of its total market value — representing about $450 billion — over the past week.

It’s now down to its lowest since November, as $1.2 trillion, or 25%, was wiped since its December record high.

Buoyed by Donald Trump’s promises to relax crypto laws, many who piled into digital assets this year were newbies.

For instance, Google searches for “how to trade crypto” spiked in recent months, most traders buying the president’s memecoin were first-time Solana users, and more Americans now own crypto than in 2024.

Top three cryptocurrencies — Bitcoin, Ethereum, and XRP — are down 19%, 23% and 25% over the same period.

Despite the brutal beating inflicted upon the industry, people remain bullish.

Yes, Galaxy Research’s top dog says Bitcoin will likely fall down to $74,000. Yes, the market has lost $1 trillion in market value since its December high.

But, analysts seem to take it as fait accompli that the industry will bounce back. Traders have poured into bets that Bitcoin will reach $120,000 by the end of March.

Bernstein and Standard Chartered both see a $200,000 price on the horizon.

The argument they make is simply that none of the fundamentals have gone away.

Trump is still in the White House, lawmakers keep pushing crypto bills through the guts of Capitol Hill, altcoin ETFs look increasingly possible to be greenlit, fintechs keep creeping into the industry, and institutions remain excited about digital assets.

Bitwise’s Matt Hougan even suggested that the crash will be good for the industry by ending the “memecoin carnival” once and for all.

That’s something many industry reps have wished for after the catastrophic launch and crash of several high-profile shitcoins over the past few months.

The industry seems to have taken Monty Python’s advice to “Always look on the bright side of life” to heart.

But should one remind them that the comedy troupe sang it during a crucifixion scene?

Robinhood stock to double despite crypto slump, says Morgan Stanley

Coming out of this week’s chaos, Morgan Stanley expects investors to see the fintech as a safe haven of sorts, or at least safer than some of its crypto rivals.

Billionaire Justin Sun wins reprieve as SEC pauses fraud case

The Tron founder appears poised to settle a long-running SEC case, Liam Kelly reports. Justin Sun invested $75 million in World Liberty Financial. The development is the latest in a string of setbacks for the regulator in its pursuit of crypto-related fraud cases this year.

Three US Bitcoin reserve bills fail despite Trump’s pledges — ‘Smacks of speculation’

Three bills that would have seen the US introduce state-run Bitcoin reserves have failed since Donald Trump took office, despite the president’s promises to relax crypto laws.

Post of the Week

Bitwise founder Arthur Hayes delivers on the gallows humour after the crypto market bloodbath.

Fam, if $BTC hits $70k which fast food joint are we applying for?