The cryptocurrency market is reeling from a significant downturn, with Bitcoin (BTC) leading the plunge. The world's largest cryptocurrency has plummeted approximately 45% from its all-time high reached in October 2025, currently trading around $61,266. This steep decline has resulted in a staggering $1.28 trillion being wiped off the total cryptocurrency market capitalization.
Bitcoin's price decline intensified on Thursday, breaching critical support levels and triggering massive liquidations in the derivatives market. Over $1 billion in Bitcoin positions were liquidated in a single day, highlighting the severity of the sell-off. The price has fallen below $70,000 and $65,000, levels not seen since October 2024, effectively erasing gains made over the past year. Bitcoin has fallen roughly 50% from its all-time high of approximately $126,300.
The factors contributing to this "Bitcoin bloodbath" are multifaceted. A broad sell-off in global technology stocks and precious metals, coupled with thinning liquidity in the crypto market, has created a perfect storm for the downturn. Geopolitical turmoil and economic uncertainty have further exacerbated the situation, leading investors to seek safer havens like gold. Bitcoin's struggle stands in stark contrast to gold, which reached an all-time high recently as investors looked for less volatile assets.
The impact of the Bitcoin crash extends beyond the cryptocurrency itself. Crypto-linked stocks have been hammered, with shares of major miners like Riot Platforms and MARA Holdings plunging in double-digit declines. Crypto-exposed firms like Coinbase and Robinhood have also experienced significant losses. Even the iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF managed by BlackRock, saw its price plunge despite recording a high trading volume.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has also suffered substantial losses. Ethereum is currently trading around $1,822, representing a more than 10% decline. Ether has fallen 19 percent this week, with losses of nearly 38 percent so far this year. The sharp drop has pushed ETH below the $2,000 mark, a key psychological level for investors.
Analysts suggest that if Ethereum fails to recover above $2,100, it could test the $1,740 support level, and a breach of that level could lead to a further decline towards $1,500. Chart projections indicate that ETH could fall to the $1,650-$1,700 range if the current pattern continues.
The current downturn has raised concerns about the profitability of Bitcoin mining. With Bitcoin's price plummeting and electricity costs remaining high, some mining companies are reportedly unplugging their equipment. The hash price index, which measures mining revenue, has reached its lowest point on record, and the average cost to mine one Bitcoin is currently around $87,000, significantly higher than its current market price.
The cryptocurrency market is facing a period of intense volatility and uncertainty. While some analysts believe that Bitcoin is currently oversold and may be poised for a rebound, others warn of further declines. The coming days and weeks will be crucial in determining whether the "Bitcoin bloodbath" will continue or if the market can find a bottom and begin a recovery.