Bitcoin suffered a sharp correction on the 25th, breaking below the critical $90,000 mark and hitting its lowest level in three months. The sudden downturn triggered a wave of liquidations across cryptocurrency futures markets, with **over $1.3 billion in leveraged positions wiped out** in just 24 hours.
According to CoinGecko price data, Bitcoin began its downward spiral around 3:00 PM Taipei time, initially losing support at $91,000. The decline accelerated rapidly, pushing the price through key psychological levels at $90,000 and $89,000. At its lowest point, Bitcoin dipped to **$88,614.79**, marking the weakest performance since November of the previous year.
👉 Discover how top traders manage volatility during market crashes.
As of this report’s publication, Bitcoin is trading at $89,668, reflecting a 6.3% drop over the past 24 hours. The sell-off extended across the broader digital asset market:
- Ethereum (ETH) plunged 12.2% to $2,392
- Solana (SOL) fell 14% to $135.42
- Dogecoin (DOGE) declined 11% to $0.2056
The cascading price action sent shockwaves through leveraged trading platforms. Data from CoinGlass reveals that total liquidation volume across crypto futures contracts reached $1.344 billion**, with more than **$1.252 billion attributed to long (bullish) positions being forcibly closed. This highlights the widespread use of leverage among retail and institutional traders who had positioned for continued upside momentum.
Why Did the Market Collapse?
Unlike previous crashes triggered by a single macro event, this downturn stems from a confluence of negative sentiment and high-profile setbacks across the ecosystem.
1. Bybit Security Breach Shakes Confidence
One of the most immediate catalysts was news that Bybit, a major cryptocurrency exchange, suffered what some analysts are calling the largest hack in crypto history. Although full details remain under investigation, early reports suggest hundreds of millions — possibly exceeding $1 billion — were siphoned from hot wallets.
Such security lapses reignite long-standing concerns about centralized exchange risk, especially during periods of heightened volatility when users rely on quick withdrawals and stable infrastructure.
2. Political Scandal Involving Argentina’s President
Adding fuel to the fire, Argentine President Javier Milei became entangled in a meme coin controversy, further eroding trust in the narrative that pro-crypto leadership would stabilize or boost market sentiment.
Milei, known for his libertarian views and vocal support of Bitcoin, faced backlash after associates promoted obscure tokens allegedly tied to his political brand. While he denies direct involvement, the incident revived memories of past scams involving celebrity-backed or politically affiliated meme coins.
Caroline Mauron, co-founder of Orbit Markets — a firm specializing in crypto derivatives liquidity — commented:
“The Bybit hack is just the latest blow. From controversial meme coin launches to recurring market manipulation, investors are being reminded of the sector’s unresolved vulnerabilities.”
From Euphoria to Fear: A Rapid Shift in Market Sentiment
Just weeks ago, optimism dominated the crypto landscape. Following Donald Trump's U.S. presidential election win, risk-on behavior surged. Bitcoin rallied strongly, breaching $100,000 amid speculation that a new administration might adopt friendlier regulatory policies toward digital assets.
Now, that momentum has evaporated. The correction has erased all gains made since the start of 2025, returning Bitcoin to where it began the year — a painful reminder of crypto’s inherent volatility.
Market analysts point to several underlying factors contributing to this reversal:
- Macroeconomic uncertainty: Rising bond yields and stronger-than-expected U.S. inflation data have made risk assets less attractive.
- Reduced institutional inflows: Spot Bitcoin ETFs have seen slowing net purchases compared to earlier in the year.
- Increased on-chain selling pressure: Large holders (commonly referred to as "whales") have moved significant amounts of BTC to exchanges, signaling potential sell intentions.
👉 Learn how to protect your portfolio during sudden market drawdowns.
What Does This Mean for Investors?
While painful for leveraged traders, sharp corrections are not uncommon in mature or maturing markets. Historically, Bitcoin has experienced double-digit drawdowns multiple times within a single year — often followed by renewed upward momentum.
However, what sets this cycle apart is the growing scrutiny from regulators and mainstream financial institutions. Unlike previous bull runs driven purely by speculation, today’s market demands greater transparency, security, and real-world utility.
For long-term holders (often called “HODLers”), short-term price fluctuations may matter less. But for active traders and newcomers drawn in by recent hype, this serves as a sobering lesson in risk management.
Key Takeaways for Navigating Volatility
- Avoid over-leveraging: High leverage amplifies both gains and losses. In fast-moving markets, even small reversals can trigger full liquidation.
- Diversify exposure: Don’t concentrate your portfolio solely in large-cap cryptos like Bitcoin and Ethereum without assessing altcoin risks.
- Use stop-loss strategies: Automated tools can help limit downside without requiring constant monitoring.
- Stay informed but avoid panic: Emotional decisions often lead to selling at lows. Stick to a predefined investment plan.
👉 Access real-time market analytics and advanced trading tools here.
Frequently Asked Questions (FAQ)
Q: Why did Bitcoin fall below $90,000?
A: The drop resulted from a combination of factors including the Bybit exchange hack, political controversy involving Argentina’s president, macroeconomic pressures, and widespread unwinding of leveraged long positions.
Q: How much money was lost in liquidations?
A: Over the past 24 hours, approximately **$1.34 billion** in futures positions were liquidated — with over $1.25 billion coming from bullish (long) traders.
Q: Has Bitcoin ever recovered after such sharp drops before?
A: Yes. Historically, Bitcoin has shown strong recovery patterns following significant corrections. For example, after dropping nearly 50% in 2022 post-FTX collapse, it rebounded over 150% in 2023.
Q: Is now a good time to buy Bitcoin?
A: That depends on your investment strategy and risk tolerance. Some investors view pullbacks as buying opportunities, while others wait for clearer signs of trend reversal. Always conduct independent research before investing.
Q: Could this downturn affect upcoming crypto regulations?
A: Potentially. Major security breaches or scandals often prompt regulators to propose stricter oversight. Events like the Bybit hack may accelerate discussions around exchange licensing and user fund protection.
Q: What’s next for Ethereum and other altcoins?
A: Altcoins typically follow Bitcoin’s trend. If BTC stabilizes above $88,000–$89,000, we may see consolidation. However, continued downward pressure could push major alts like ETH toward retesting key support levels near $2,200–$2,300.
Core Keywords:
Bitcoin crash
Crypto liquidation
Bitcoin price drop
Cryptocurrency market volatility
Bitcoin below $90K
Leverage risk in crypto
Bybit hack 2025
Ethereum price decline
This event underscores the importance of resilience and strategic planning in digital asset investing. While sentiment may be bearish today, history suggests that periods of fear often precede new phases of growth — for those prepared to navigate the storm wisely.