Bitcoin has plunged to its lowest level since November 2024, shortly after President Trump’s election, as it dropped 4.3% in the last 24 hours to hover just above the $75,000 mark. This current value signifies a staggering decline of over 40% from its all-time high of $126,000 reached on October 6. The downturn is largely attributed to a major crash in the crypto market on October 10, which saw Binance’s illiquid markets liquidating tens of billions in a single day, according to Alexander Blume, CEO of Two Prime.
The total market cap of cryptocurrencies is currently at $2.6 trillion, a significant drop from $4.2 trillion recorded the day before the October 10 liquidation event. Blume emphasized that the intense selling pressure has initiated a liquidity crunch, causing prices to realign to current market conditions. Broader macroeconomic factors, including a pullback in gold and silver, have contributed to increased volatility and anxiety across all markets, impacting Bitcoin directly.
Despite its recent struggles, Blume stated, “I suspect, based on increased volatility and current price, we are not far from the bottom.” Over the past 24 hours, crypto liquidations have surged to $758 million, approaching $7 billion for the week. Additionally, Bitcoin exchange-traded funds (ETFs) are facing challenges, with $272 million in outflows noted on Tuesday, based on SoSoValue data.
Nic Puckrin, cofounder of Coin Bureau, highlighted the technical challenges that Bitcoin faces, indicating the asset has breached key moving averages, further pulling it downward. He pointed out that the next significant support level to watch is around $70,000, just above the last cycle’s all-time high of $69,000, marking a crucial psychological barrier. If Bitcoin slips below this threshold, it may head toward its potential bear market low, with Puckrin monitoring a range between $55,700 and $58,200 as critical support levels.
Analysts from Citi noted that the nomination of Kevin Warsh as Fed Chair, who tends to favor a smaller balance sheet, could contribute to the overall anxiety in the market, alongside concerns about a potential crypto winter. Their analysis suggests that the $70,000 level is a key indicator to watch leading up to the U.S. elections.
Longer-term perspectives suggest that the decline in Bitcoin prices reflects a broader risk-off sentiment rather than a fundamental breakdown in demand. Nic Roberts-Huntley, CEO and cofounder of Blueprint Finance, elaborated on the sharp sell-off and its implications for liquidity. He stated that while recent trends have not favored Bitcoin, a return of macro clarity and improved liquidity could aid in stabilizing the coin, potentially allowing it to stage a recovery rally in later cycles. Traders and investors are advised to closely monitor Bitcoin’s ability to maintain levels in the mid-$70,000s and reclaim the $78,000 to $80,000 range as significant milestones for the future.
