While the rest of the world watched in awe, Vietnam rocketed to become the fourth-largest crypto market globally, only to see it all come crashing down in spectacular fashion. Between 17 and 20 million young Vietnamese jumped into the crypto pool, pushing annual transactions to a mind-boggling $100 billion. Economic pressures and remittance needs fueled this frenzy. The kids weren’t just playing—they were leading global speculation trends.
Vietnam’s crypto boom to bust wasn’t just impressive—it was spectacular, with millions of young traders driving a $100 billion market.
October 2025 marked the peak. Bitcoin hit $126,000, and Vietnam rode that wave higher than most nations. Retail money flowed like crazy, exceeding domestic financial scales. Everyone and their grandmother had some crypto scheme going. Legitimate products? Sure. But plenty of ventures promised returns of 400-500%. Because that’s totally sustainable, right?
Then February 2026 happened. Bitcoin crashed to $60,000-$70,000—half its peak value. The crash demonstrated a typical market pattern where price decline was symmetrical to the reduction in leverage. Other digital assets? They fell even harder. Fortunes vanished overnight. Selling pressure mounted. Market liquidity dried up. Classic crypto rollercoaster, except this time nobody was laughing.
The aftermath wasn’t pretty. A staggering 55% of individual investors reported losses. People watched their $200,000 portfolios turn worthless. Young investors who’d been dreaming of early retirement suddenly couldn’t pay rent. Optimism gave way to despair. Dreams? Crushed.
The industry contracted violently. Startups folded. Companies downsized or disappeared. Ninety Eight—once a darling—axed a third of its staff. The crypto winter brought reduced liquidity across the entire ecosystem. Fundraising became nearly impossible. And this wasn’t some quick dip; experts predicted years of downturn.
Meanwhile, the government stepped in. A new law recognizing digital assets took effect January 2026. Exchanges now needed $400 million minimum capital—an impossible sum for most. The pilot program favored big banks and securities firms. A 0.1% transaction tax aimed to control flows. The wild west was over.
What’s next? Big institutions taking over. Small firms fleeing abroad. New startups struggling for attention from gun-shy investors. The government now controls what was once free-flowing. Some stronger firms might survive the winter. Most won’t.
