The vibe in the crypto market right now: ‘Stay alive’
Subscribe to enjoy similar stories. The party in the crypto market is starting to feel like a distant memory. After a disappointing end to 2025, major cryptocurrencies have languished to start the new year.
Bitcoin has shed roughly one-third of its value since hitting a record high in October, including a 4.2% drop in January. Ether has slid more than 40% from last summer’s all-time highs. The slump has continued even though stocks are still near records, with the gains broadening throughout the market and investors betting the economy will keep growing. A weakened dollar had also pushed investors toward alternative assets for safety in the so-called debasement trade.
Yet prices for cryptocurrencies have slid while old-fashioned bets such as blue-chip stocks and gold have paid off. On Friday, bitcoin slipped further after President Trump announced Kevin Warsh as his pick for the next Federal Reserve chair. “It’s a mess out there," said Gennaro Salemme, a 32-year-old car salesman in Chicago.
“The vibe right now is ‘stay alive.’" Salemme still keeps roughly 40% of his $200,000 portfolio in crypto investments including ether, XRP and bitcoin ETFs. He first bought bitcoin nine years ago when the price was $3,000, and said he’s “100%" still bullish on it for the long term. But holding on can be excruciating when everyone else is abandoning ship.
“Everyone wants to leave when things go south," Salemme said. “A lot of this is emotionally driven." After rallying in early 2025, digital assets have surrendered much of the spotlight to the artificial-intelligence race, which sucked up investors’ capital and powered a third straight year of double-digit gains in stocks. A weakening job market and escalating geopolitical tensions
. Read on livemint.com