Bitcoin News Today: 2025 Crypto Slide: Miners Pivot to AI, Avoid Systemic Fallout

The cryptocurrency market in 2025 faced its most severe correction since the FTX collapse of 2022, with Bitcoin (BTC) retreating to $87,000 and the total market capitalization shrinking by 30% from its $4.2 trillion peak. This downturn, while sharp, differed from the systemic failures of 2022, as institutional structures held firm and no major bankruptcies emerged among listed firms. The sell-off was driven by a confluence of macroeconomic shifts, including heightened expectations of a December Federal Reserve rate cut, which surged from 30% to 80% in a week, and a collapse in Bitcoin miner profitability, with hashprice-the value earned per unit of computing power-plummeting to $34.49/PH/s, its lowest level in years.

Bitcoin's technical support near $87,000 coincided with a broader reevaluation of risk in the digital asset sector. The Fed's policy pivot, combined with Bitcoin's bearish retracement, prompted analysts to reassess positioning across the market. Meanwhile, Bitcoin miners grappled with existential challenges. Record hashrate levels, reflecting the network's computational strength, clashed with falling prices, extending hardware payback periods to over 1,200 days. Operators, including Bitfarms and CleanSpark, pivoted to high-performance computing (HPC) and AI services, which generate 2–5 times more revenue per kilowatt-hour compared to Bitcoin mining according to analysis. JPMorgan analysts upgraded mining stocks, citing $19 billion in contracted HPC revenue, though the sector's reserves dwindled as miners sold 30,000 BTC ($2.6 billion) in a 48-hour liquidation wave according to reports.

The 2025 crash pales in comparison to the FTX-driven collapse of 2022, which erased 73% of Bitcoin's value and triggered mass bankruptcies. While November 2025 saw record leveraged position liquidations-$19 billion in a single day-systemic risks remained limited. ETFs, including BlackRock's IBIT, experienced volatile outflows and inflows, with Abu Dhabi's sovereign wealth fund tripling its stake in the third quarter. Institutional confidence, however, persisted, as companies like MicroStrategy added to their Bitcoin holdings despite the downturn.

Institutional confidence, however, persisted, as companies like MicroStrategy added to their Bitcoin holdings despite the downturn. Looking ahead, the industry's survival hinges on Bitcoin's ability to recover and the strategic shift toward hybrid operations. JPMorgan estimates that 35% of miners' energy capacity could transition to HPC by 2026, offering a lifeline as Bitcoin's price remains volatile. For now, the focus remains on macroeconomic trends and institutional involvement, with the market navigating a high-stakes correction rather than a foundational crisis.