Bitcoin Market Faces Crucial Test as Prolonged Downturn Approaches Fifth Month

The Bitcoin market has been facing significant challenges in early 2025, with the premier digital asset on track to record its fifth consecutive monthly price decline. This prolonged downturn echoes the brutal crypto winter of 2018, where Bitcoin's price collapsed from nearly $20,000 to around $3,200 over a year.

Market analysts define a bear market as a prolonged period of declining asset prices, typically marked by a drop of 20% or more from recent highs amid widespread pessimism. Bitcoin's current phase fits this definition precisely, with the decline from its October high representing a severe correction by any standard.