The crypto market has just endured one of the most violent sell-offs in Bitcoin’s history, as BTC smashed through key support levels and triggered massive liquidations across the derivatives market.
Bitcoin tumbled sharply toward the $62,000 zone, marking the largest drawdown in absolute dollar terms ever recorded. Compared with its all-time high above $126,000 set in October 2025, Bitcoin has now lost nearly 50% of its value — a decline of more than $63,000 per BTC.
The collapse unfolded amid growing panic across exchanges. Selling pressure intensified as investors rushed to exit positions, causing Bitcoin to lose the $70,000 support and slide rapidly into the $60,000 range.
Over $1.1 Billion Liquidated in a Single Day
The price crash was heavily amplified by leveraged trading. According to Coinglass, more than $1.1 billion in positions were forcibly liquidated over the past 24 hours, with the majority coming from long bets as BTC broke multiple technical levels.
Traders who entered during the recent rebound were quickly wiped out. Once the $70,000 level failed, a domino effect emerged: the more positions that were liquidated, the deeper the price was pushed, creating a dangerous deleveraging spiral into the $60,000 zone.
This correction is now considered even more severe than several previous market crashes, including the panic selling seen during the FTX collapse.
Strategy Shares Sink as Company Records $12.4B Bitcoin Loss
Not only retail investors were hit. Strategy — the company best known for its aggressive Bitcoin accumulation strategy — reported a net loss of $12.4 billion in Q4 2025, largely driven by Bitcoin’s 22% decline during the quarter.
Bitcoin peaked at $126,000 in early October but fell below $88,500 by year-end, and has continued sliding to around $60,200 so far this year. This puts the current price well below Strategy’s average purchase cost of $76,052 per BTC.
Despite reporting a 1.9% year-on-year revenue increase to $123 million thanks to its business intelligence segment, Strategy’s stock came under heavy pressure. Shares of MSTR closed down 17% in the latest session, falling to $107.
Strategy currently holds 713,502 Bitcoin and is now down roughly 17.5% on its BTC portfolio after Bitcoin slipped toward $62,500.
Macro Pressure Weighs on Risk Assets
Bitcoin’s weakness is occurring alongside a broader pullback in global risk assets. Concerns over macroeconomic conditions, capital rotation out of speculative markets, and a defensive investor mindset are all weighing on crypto.
Losing nearly half its value in just a few months highlights how brutal crypto market cycles remain — especially while leverage continues to dominate trading activity. In the near term, many analysts expect Bitcoin to remain highly volatile before establishing a new equilibrium.
