This wasn’t just a gentle slide down a hill. Bitcoin smashed through important support levels like a bowling ball through pins. The cryptocurrency fell below its 50-week moving average and closed under $100,000 for the first time since May 2025. When Bitcoin gets this dramatic, it usually brings friends along for the ride. Ethereum and other major cryptocurrencies joined the tumble in what became a market-wide sell-off.
Bitcoin demolished key support levels and dragged the entire crypto market into a devastating sell-off below $100,000.
What caused this digital disaster? The usual suspects lined up like villains in a superhero movie. Rising interest rates scared investors away from risky assets. Regulatory fears cast dark clouds over the crypto world. Meanwhile, early 2025 buyers who had made good profits decided it was time to cash out.
Mix in some weekend trading with low liquidity, and you get a recipe for serious volatility. The weak weekend liquidity made price swings even dramatic than usual. Many traders likely faced stop-loss orders triggering automatically as Bitcoin broke through key support levels.
The numbers tell a sobering story. Trading volumes doubled as panic set in. Derivative liquidations topped $335 million in a single day, with total crypto liquidations reaching nearly $725 million. Bitcoin dropped below the 2025 realized price of $103,227, meaning the average buyer from this year is now sitting on losses of about 13%. In contrast, spot gold has remained relatively stable throughout this crypto market chaos.
This correction has lasted over 40 days, similar to April 2025’s brutal drop from $109,000 to $76,000. Technical analysts point out that Bitcoin’s four-year halving cycle might be nearing an end, which historically leads to extended correction periods lasting 12 to 18 months.
History offers both warning and hope. Bitcoin has crashed before, sometimes spectacularly. Yet it has also bounced back to reach new heights over time. The question isn’t whether Bitcoin will face more turbulence, but whether investors can stomach the wild ride ahead.
In crypto, yesterday’s hero can quickly become today’s cautionary tale.
