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Michael Gachihi Nderitu
By
Michael Gachihi Nderitu
December 28, 2025 2:43 pm EST
The Biggest Crypto Market Crash Events Of 2025 and Why They Happened
Key Insights
Trump tariffs-induced crypto market crash of Q1 and how it set the stage for all-time highs.
Tariffs 2.0 and double top theory. How this led to the sentiment shift that has suppressed crypto in H2 2025.
Macro headwinds in Q4: Large holder positioning as the Yen risked putting the global investor landscape on a chokehold.
There has been a crypto crash almost every year since 2020. Understanding the crashes and the reasons behind them may offer critical insights into understanding the market’s next move.

There were two major crypto market crash events in 2025 despite heavy bullish expectations. The first crash occurred in Q1 and extended to the second week of April.

This first crypto market crash resulted in a sharp liquidity flush. The total crypto market cap tanked $3.6 trillion just after mid-January to as low as $2.42 trillion by 9 April.
In other words, the market lost roughly $1.24 trillion within 3 months, thus constituting a major crash. This outcome was not triggered by cryptocurrency news but rather by macroeconomic factors.

The first crypto market crash of 2025 was triggered by Trump’s tariff wars. Investors pulled their funds from risk-on assets to avoid potential erosion, hence the market crash.

According to Onchain Lens monitoring, a whale deposited 2.00 million USDC into HyperLiquid and opened an $ETH long position with 2x leverage.

Currently, the position holds 1,425 $ETH, worth approximately 4.00 million USD, and the address has placed an order to close the position when the $ETH price reaches $2,980.00.

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