Bitcoin Price Plummets Today: Unpacking the Key Reasons Behind the Crash
Bitcoin's price took a nosedive today—here's what's really driving the sell-off.
Market tremors or just another Tuesday? The crypto king shed value faster than a hedge fund manager's patience during a bear market. No single trigger, but a cocktail of factors: overleveraged longs getting liquidated, miner capitulation, and that classic 'sell the news' vibe after yet another ETF approval.
Liquidity crunch: Thin order books magnified the drop as whales dumped holdings to cover margin calls elsewhere. Same old story—crypto markets still trade like a volatile penny stock, just with fancier jargon.
Silver lining? Blood in the streets means opportunity for those who remember Bitcoin’s survived 80% drops before. But hey, if you wanted stability, you’d have bought bonds (and accepted your 3% annual defeat to inflation).
Bitcoin price crashed below $90,000, touching $89,500 for the first time in seven months. The drop has shaken the market, pushing the Fear & Greed Index into “extreme fear”. Many traders now worry the price could dip even further, with some expecting BTC price to go as low as $86,000.
Top Reasons Why Bitcoin Price is Crashing?
BTC Price Breaks Major Support Levels
Bitcoin’s decline began over the weekend when it failed to climb back above the key support level of $92,000. Once that level flipped into resistance, the market mood shifted sharply.
As of now, BTC was trading around $89,780, down 5% in 24 hours, and more than 14% for the week. It was the break below the psychological $90,000 line that triggered real panic. That drop opened the floodgates for forced liquidations.
In the past 24 hours alone, more than 180,000 traders were liquidated, wiping out over $1 billion, with long positions taking the biggest hit. The largest single liquidation came from Hyperliquid: a massive $96.5 million BTC-USD position.
Corporate Buyers Go Silent
Earlier this year, large corporate buyers helped push Bitcoin up by making aggressive purchases. But now, that demand has slowed. Companies like Strategy, Metaplanet, usually known for buying aggressively, have reduced their pace.
Although Strategy added 487 BTC last week, overall corporate buying is much lower than it was in the first half of the year. This pullback has weakened one of Bitcoin’s strongest sources of support.
ETF Outflows Add Extra Pressure
Bitcoin ETFs, which were once adding billions in inflows, are now moving in the opposite direction. Over recent days, U.S. spot ETFs have seen $1.85 billion in outflows. Surprisingly, BlackRock, usually the strongest ETF buyer, led the withdrawals with more than $900 million leaving.
Concerns over the TRUMP administration’s tariff plans and uncertainty around future Fed rate cuts have also frozen investor confidence.
Social Dominance Hits Extreme Levels
Data from Santiment shows Bitcoin’s “social dominance” climbing to 60%, the highest in four months. This usually happens when traders panic and shift attention from altcoins back to Bitcoin. Historically, such moments often mark market bottoms or major turning points.
What Comes Next?
Despite this bearish market outlook, some analysts remain hopeful. Meanwhile, Gemini co-founder Cameron Winklevoss believes this may be the “last chance” to buy bitcoin under $90,000.
However, technical experts warn that if Bitcoin doesn’t reclaim $93,000 soon, it could slide toward the liquidity zone around $86,000 to $88,000.
For now, the market remains on edge, waiting to see whether this drop becomes a DEEP correction or a major buying opportunity.
