Why Bitcoin Crashed Over 40% From Its October Peak: Stablecoins Take Over

Why From Its October Peak: Stablecoins Take Over

Bitcoin once ruled the crypto world. It hit a sky-high price of $126,272 in October 2025. But now, things look very different. The price has dropped more than 40%. It fell from $90,000 last month to just over $67,000 recently. This big plunge has everyone talking. Why is the king of crypto losing its crown? The answer lies in new rivals like stablecoins and a shift in what people want from digital money.

The Shocking Price Drop: Numbers Tell the Story

Let’s look at the facts. Bitcoin’s record high came amid huge hype. Investors poured in money. Institutions jumped on board. But the fall was fast and hard. In the last few weeks alone, it lost over 20% of its value. This is not just a small dip. It’s a major crash from the top.

What makes this drop stand out? Crypto rules in Washington are getting friendlier. Big players like banks and funds are buying in. Yet, Bitcoin still slides. The problem is not just price. It’s about purpose. People used to buy Bitcoin hoping the “number go up.” Now, with prices going down, that story has lost its magic.

Peak price: $126,272 (October 2025)
Recent high: $90,000 (early February)
Current level: $67,000+
Total drop: More than 40%

This chart shows a clear trend. Bitcoin is struggling while other crypto tech grows strong.

Stablecoins: The New Stars of Crypto

Stablecoins are digital coins tied to real money like the US dollar. They don’t swing wild like Bitcoin. That’s why they are booming. People want steady value for payments and trades.

Big signs point to this shift. Payment apps like CashApp now support stablecoins. A new law called the GENIUS Act helps them grow. Tokenization tech lets real assets turn into digital tokens on blockchains. Cross-border payments using stablecoins are faster and cheaper too. None of this needs Bitcoin.

“Stablecoins are for payments. Nobody sees Bitcoin that way anymore,” says a top exec from a tokenization firm.

Stablecoin use ties more to Ethereum and other chains. Bitcoin sits on the sidelines. Its role as a store of value is questioned when prices crash.

Bitcoin’s Big Problems: No Stability, No Use

Bitcoin was born as digital gold or cash. But it fails both tests. Prices jump and fall too much. This volatility scares users away.

For a currency to work, it needs steady value. If it drops fast, sellers won’t take it. If it rises fast, holders won’t spend it. Bitcoin’s fixed supply – just 21 million coins ever – can’t fix this. It can’t adjust like real money systems.

Plus, real-world use is low. Few stores take Bitcoin. Fees and slow speeds make it bad for daily buys. Stablecoins fix these issues. They stay at $1 each and move quick.

What Experts Say About the Crash

Portfolio managers see the end of Bitcoin’s simple story. “The central tale was prices rising. Now they fall. That’s no fun,” one expert notes.

Others call crypto investing like a casino. People bet on hype from social media. They chase jackpots without knowing the real value or use cases. Bitcoin led this game. Now, smarter options win.

Prediction Markets and Other Trends

It’s not just stablecoins. Prediction markets let people bet on events. They use fast blockchains, not Bitcoin. These tools draw users who want action beyond holding coins.

Institutional money flows to these new areas. ETFs hold Bitcoin, but activity shifts elsewhere. Bitcoin ETFs see inflows, yet prices drop. Why? Demand for utility beats pure speculation.

What This Means for Investors

If you hold Bitcoin, this hurts. But it’s a wake-up call. Diversify into stablecoins or utility tokens. Look at projects with real use, like payments or assets.

Check volatility: Stick to stable assets in tough times.
Watch regs: Good laws help all crypto, not just Bitcoin.
Focus on use: Coins that solve problems last longer.
Stay informed: Follow trends like tokenization.

Long-term, Bitcoin may rebound. Halvings cut supply. But it must evolve. Become more than a gamble.

Looking Ahead: Can Bitcoin Bounce Back?

The crypto world changes fast. Stablecoins could hit trillions in value soon. Bitcoin might find a niche as digital gold. But it faces stiff competition.

Watch for key events. More app support for stablecoins. Global payment shifts. Bitcoin upgrades for speed. All could sway the market.

In the end, From Its October Peak shows crypto matures. It’s less about wild rides, more about real tools. Investors who adapt will win.

Stay tuned for more on crypto shifts. What do you think – is Bitcoin done, or just resting?

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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity’s role is to inform the cryptocurrency and blockchain community about what’s going on in this space. Please do your own due diligence before making any investment. Blockmanity won’t be responsible for any loss of funds.

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