Crypto on track to be one of the worst-performing asset classes of the year

With just six weeks left in 2025, Bitcoin and Ethereum are both in the red for the year, as the two largest cryptos lead a broader downward trend.

If this pattern holds, crypto could end up among the worst-performing asset classes of 2025, trailing even traditional markets and money market funds.​

As CryptoSlate reported yesterday, at $96,000, nearly 99% of Bitcoin investors who bought in the past 155 days are now holding at a loss. This is a stark reminder that even after a year of record highs and institutional adoption, the majority of recent buyers are underwater.

The relentless selling pressure has been driven by existing holders exiting their positions, rather than by options or manipulation, as some have speculated.​

ETF inflows and unrealized profit

According to macro analyst Jim Bianco, despite the downturn, the original 10 Bitcoin spot ETFs have seen a cumulative inflow of $59 billion since their launch in January 2024.

However, the average purchase price for these ETFs is now $90,146, meaning the unrealized profit has shrunk to just $2.94 billion, or 4.7% of the total inflow.

Had this capital remained in cash or a money market fund, the unrealized gain would have been higher (despite sticky inflation and the narrative of Bitcoin as hedge against persistent money printing).​

Worst-performing asset classes: Altcoins in deep capitulation

The pain is not limited to Bitcoin. Altcoins across the board are showing investors how it feels to be holding one of the worst-performing asset classes in 2025.

According to Glassnode, only 5% of altcoins are currently in profit, highlighting a deep capitulation phase for the broader crypto market.

This divergence between Bitcoin and altcoins is unprecedented, with institutional focus and regulatory differences driving a split in market dynamics. The decoupling raises important questions about portfolio diversification and risk assessment for investors navigating this volatile landscape.​

The bigger picture

While Bitcoin and Ethereum have outperformed many other asset classes over the past five years, their year-to-date performance in 2025 is a sobering reminder of the risks inherent in crypto investing.

The combination of institutional inflows, retail pain, and altcoin capitulation paints a complex picture of a market in transition. As the year draws to a close, investors are left to ponder whether this is a temporary correction or the start of a longer-term bear market.​

Despite promises of the liquidity floodgates set to open, the historic performance of ‘Uptober’ and ‘Moonvember’, unless crypto sees a renewed catalyst, it will be among the worst-performing asset classes of 2025. Not something on many crypto investors’ bingo card (or Christmas list) this year.

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