As Bitcoin plummeted to $78,000—its lowest point since November 2024—the entire cryptocurrency market descended into chaos. The king of crypto has fallen 25% from its all-time high of $107,339 recorded in January. Not pretty.
The crash triggered massive liquidations, with over $412 million in BTC positions wiped out in just 24 hours as Bitcoin tested the critical $92,000 support level.
Panic selling unleashed a tsunami of liquidations, vaporizing hundreds of millions in leveraged positions as Bitcoin wobbled at crucial support.
But Bitcoin wasn’t the only victim. Altcoins got absolutely hammered. Ethereum tumbled 10.4%, desperately clinging to its $2,100 support level. XRP investors watched in horror as their coin dropped 9.4%, slipping below the psychologically important $2 mark.
Solana took the worst beating among top cryptocurrencies, plummeting a stomach-churning 14%. Even the internet’s favorite meme coin wasn’t spared—Dogecoin crashed 11%, erasing its recent gains.
The bloodbath can be traced to several factors. Trump’s new trade war tariffs on Canada, Mexico, and the EU spooked markets. Macroeconomic uncertainty and inflation fears didn’t help. Neither did the mountains of overleveraged positions getting liquidated faster than you can say “HODL.”
The sentiment shift from bullish to bearish happened practically overnight. Technical analysts point to Bitcoin’s double-top pattern as a clear indication of the bearish reversal that’s now unfolding. This dramatic reversal demonstrates how quickly bull run momentum can dissolve when market conditions change. Total crypto market capitalization nosedived to $2.8 trillion, with $300 billion evaporating in a single day. Ouch.
Bitcoin’s dominance actually increased as altcoins suffered even worse losses. The Altcoin Season Index dropped to a measly 38 out of 100, and market liquidity dried up fast. The recent retaliatory tariffs from China on American agricultural products have further accelerated the market’s downward trajectory.
Institutional reactions were mixed. Some ETF outflows were reported, though their significance remains debated. One eye-popping statistic: 734,621 traders liquidated in a single day. That’s a lot of margin calls.
Market sentiment indicators flashed red across the board. The Fear and Greed Index plunged into “Extreme Fear” territory, social media turned decidedly bearish, and Google searches for “crypto crash” spiked.
Some panicked and sold. Others saw opportunity. Meanwhile, regulatory concerns and global economic tensions added fuel to the already raging fire.
