Here's an uncomfortable thought for crypto enthusiasts: the asset class that was supposed to revolutionize finance might end up being the year's biggest dud. Jim Bianco, President of Bianco Research, pointed out Friday that if Bitcoin (BTC) and Ethereum (ETH) finish 2025 in the red, cryptocurrency will claim the dubious honor of worst-performing asset class for the year.

Where Things Stand Now

Bitcoin started 2025 at $93,463 and briefly dipped below that level earlier this week before staging a modest recovery. At the time of reporting, BTC was trading around $95,871, which translates to a mere 2.6% gain year-to-date. Not exactly the moon everyone was promised.

Ethereum is doing even worse. After opening the year at $3,331, it was hovering at $3,209, down 3.7% year-to-date. These aren't catastrophic losses, but they're not great either, especially when you consider what else investors could have done with their money.

The ETF Reality Check

Here's where things get really interesting. Bianco highlighted on social media platform X that since January 2024, a staggering $59 billion has poured into the initial 10 Bitcoin Spot ETFs. That massive inflow has resulted in an average purchase price of $90,146.

The punchline? "Had this money stayed in cash (a money market fund) over the last 22 months, it would have had a larger unrealized gain," Bianco noted. Ouch. When cash is beating your investment, you know something's not going according to plan.

The Bulls Still Believe

Not everyone's hitting the panic button though. Hunter Horsley, CEO of Bitwise Asset Management, told CNBC that current Bitcoin levels represent a "reasonable entry point" for investors. He's maintaining his optimistic outlook for 2025, arguing that Bitcoin continues to capture market share from gold.

Meanwhile, Michael Saylor of Strategy Inc. (MSTR) is doubling down on his Bitcoin conviction despite the recent turbulence. In a statement on X, Saylor emphasized that Strategy remains secure even if Bitcoin crashes by 80%. He pointed to Bitcoin's long-term track record, noting that the cryptocurrency has delivered an average annual gain of 50% over the past five years, outperforming major asset classes.

Fear Takes Hold

The market's mood has definitely soured. Bitcoin's sharp decline below $96,000 has intensified investor fears, with the Crypto Fear and Greed Index dropping to one of its lowest points this year. The exodus was visible in the ETF flows too, with a single day recording $869.9 million in net outflows.

So what's the takeaway? Crypto's having a rough start to 2025, and if things don't turn around, it could end up being the year's worst investment. Whether that makes current levels a buying opportunity or a warning sign depends entirely on your time horizon and risk tolerance.