Defx Insights

Tag: Bitcoin Crash

  • Bitcoin’s $500M Bloodbath: Mass Liquidation Alert! 📉

    Market Shockwave: Bitcoin Derivatives Face Historic Wipeout

    In a devastating market event, over $500 million in cryptocurrency long positions were liquidated as Bitcoin plunged below the critical $80,000 level, marking one of the largest single-day liquidation events of 2025. This crash follows recent warnings about Bitcoin’s $80K support test, which has now materialized into a significant market correction.

    Liquidation Analysis: By the Numbers

    According to data from CoinGlass, the total liquidations have surpassed $685 million in the past 24 hours, with long positions accounting for a staggering 76% ($519 million) of all liquidations. Bitcoin led the carnage with $278 million in liquidations, while Ethereum saw less than half that amount, indicating heightened speculative activity around BTC.

    Market Impact and Technical Analysis

    The mass liquidation event, known as a ‘long squeeze,’ has several key implications:

    • Bitcoin price dropped to $79,400, marking a 6% weekly decline
    • Open Interest has shown a consistent downward trend
    • Reduced leverage could lead to more stable price action
    • Market sentiment shifts from extremely bullish to cautious

    Expert Perspectives

    Market analysts suggest this correction could be healthy for the market long-term. “The reduction in leverage and cooling of speculative activity typically leads to more sustainable price action,” notes crypto analyst Sarah Chen from DigitalAsset Research.

    SPONSORED

    Trade Bitcoin with up to 100x leverage and stay ahead of market movements

    Trade Now on Defx

    Looking Ahead: Market Outlook

    While the immediate market reaction has been severe, the decreasing Open Interest suggests a healthier market structure is forming. Traders should monitor the $75,000 level as the next critical support zone.

    Source: Bitcoinist

  • Bitcoin Alert: $63K Crash Coming? Key Level Reveals All

    Bitcoin Alert: $63K Crash Coming? Key Level Reveals All

    Market Analysis Alert: Bitcoin’s Critical Resistance Test

    Bitcoin’s recent plunge below $90,000 has sent shockwaves through the crypto community, with leading analysts now warning of a potential further decline to $63,000. This bearish outlook comes amid heightened market volatility and coincides with Bitcoin’s crucial support level test.

    Technical Analysis Breakdown

    According to TradingView analyst Alixjey, Bitcoin faces a decisive moment at the $99,500 resistance level. A failure to break this threshold could trigger a cascade of selling, potentially pushing BTC down to the $63,000-$65,000 range. This projected decline represents a significant 39% correction from Bitcoin’s recent all-time high of $104,000.

    Market Implications and Opportunities

    While the potential downturn may appear bearish, several experts view this as a strategic buying opportunity. The projected $63,000 support level aligns with historical accumulation zones and could present an attractive entry point for long-term investors.

    SPONSORED

    Trade Bitcoin with up to 100x leverage on perpetual contracts

    Trade Now on Defx

    Key Factors to Watch

    • Resistance level at $99,500
    • Support zone between $63,000-$65,000
    • Upcoming Non-Farm Payroll (NFP) data impact
    • Institutional whale movements

    Expert Outlook

    Herbert Sim, CMO of AICean, provides an even more bearish projection, suggesting a possible drop to $40,000. However, he emphasizes this would likely be temporary, with strong recovery potential in late 2025.

    Source: NewsBTC

  • Bitcoin Crash Alert: $153K Target Despite Fear!

    Bitcoin’s recent 22% correction from its all-time high has sparked fear in the crypto market, but veteran analyst Bob Loukas sees this as a typical cycle movement that could lead to new heights of $153,000. Recent market analysis suggests this correction aligns with historical patterns.

    Market Correction or Buying Opportunity?

    Bitcoin has dropped from $110,000 to approximately $86,562, triggering widespread concern among traders. However, Loukas, known for his four-year cycle analysis, maintains this correction falls within normal parameters:

    • Current drawdown: 22% from ATH
    • Historical average: 20-30% during bull markets
    • Potential bottom range: $75,000-$80,000

    The Four-Year Cycle Theory

    Loukas’s analysis centers on Bitcoin’s four-year cycle framework, which has historically provided reliable insights into market movements. Key points include:

    • Weekly cycles lasting approximately 6 months
    • Two-thirds upward movement followed by correction
    • Current cycle low established in late 2022
    • Projected peak: Fall/Winter 2025

    SPONSORED

    Trade Bitcoin with up to 100x leverage on perpetual contracts

    Trade Now on Defx

    Institutional Adoption and Market Maturity

    A significant aspect of this cycle is the increasing institutional interest in Bitcoin. Unlike previous cycles, Bitcoin appears to be decoupling from alternative cryptocurrencies, suggesting a maturing market. Notable developments include:

    • Growing interest from pension funds
    • Sovereign wealth manager participation
    • Reduced correlation with altcoin markets

    Risk Factors and Warning Signs

    While maintaining a bullish outlook, Loukas acknowledges potential risks:

    • Failed weekly cycle scenario if recovery doesn’t exceed $110,000
    • Possibility of deeper correction to mid-$70,000s
    • Importance of maintaining key support levels

    Market Outlook and Price Targets

    Based on current market conditions, Loukas projects:

    • Primary target: $153,000
    • Potential 80% upward move from current levels
    • Timeline: Next multi-week upswing

    As the market continues to evolve, traders and investors should remain vigilant while keeping the broader cycle perspective in mind. The current correction, while significant, appears to be setting the stage for the next major move in Bitcoin’s ongoing bull market.

  • Bitcoin Crashes 20%: Trump Tariffs Spark $2B Exodus!

    Bitcoin Crashes 20%: Trump Tariffs Spark $2B Exodus!

    Market Shockwaves as Bitcoin Plunges Below $84,000

    Bitcoin (BTC) suffered a devastating blow on Wednesday, plummeting to $81,000 – its lowest point in four months. The anticipated post-election ‘Trump bump’ has dramatically reversed course, with Trump’s aggressive tariff policies sending shockwaves through crypto markets.

    Multiple Factors Behind the Crash

    Several key developments have contributed to this dramatic market downturn:

    • 20% decline since Trump’s January inauguration
    • $2.1 billion in Bitcoin ETF outflows over 6 days
    • $2 billion in liquidated long positions
    • Growing concerns over inflation and trade tensions

    ETF Exodus Intensifies Selling Pressure

    The massive outflow from Bitcoin ETFs has become particularly concerning, with Tuesday alone seeing over $1 billion withdrawn from spot Bitcoin funds. Industry leaders Fidelity Bitcoin Fund (FBTC) and BlackRock iShares Bitcoin Trust ETF (IBIT) have been hit especially hard.

    SPONSORED

    Trade Bitcoin with up to 100x leverage and maximize your profit potential

    Trade Now on Defx

    Options Market Signals Further Downside

    Traders are actively hedging against further declines, with significant interest in put options at the $70,000 strike price. Data from Deribit shows this represents the second-highest open interest among contracts expiring February 28, with $4.9 billion in total open interest.

    Expert Analysis and Market Outlook

    Chris Newhouse, director of research at Cumberland Labs, attributes the decline to “tariff policies dampening the outlook and stubbornly high short-term inflation expectations.” The recent Bybit Ethereum hack has further eroded market confidence.

    Broader Crypto Market Impact

    The bearish sentiment has spread beyond Bitcoin, affecting the entire cryptocurrency ecosystem:

    • Ethereum facing increased volatility post-Bybit hack
    • Solana surrendering recent gains amid declining memecoin interest
    • Perpetual futures seeing significant long position liquidations

    Looking Ahead: Market Catalysts

    Ravi Doshi of FalconX suggests the market needs a new catalyst to reverse the bearish trend. Currently, BTC is struggling to maintain support at $84,578, with a 4.5% decline in the last 24 hours suggesting further downside potential.

    Source: NewsbtC

  • Bitcoin Crash Wipes $1B: Mass Liquidation Panic!

    Bitcoin Crash Wipes $1B: Mass Liquidation Panic!

    Market Shockwave as Bitcoin Tests $86K Support

    In a dramatic market downturn, Bitcoin plummeted to $86,099 on February 26th, triggering a massive $1.06 billion wipeout from the crypto market cap. Data from Coinglass reveals approximately 230,000 trading positions were forcefully liquidated, marking one of the largest single-day liquidation events of 2025.

    This price action coincides with significant outflows from Bitcoin ETFs, with five-day withdrawals reaching $1.1 billion, including a substantial $516 million exodus on February 24th alone.

    Key Market Indicators Flash Warning Signs

    Several critical metrics point to increasing bearish sentiment:

    • Open interest dropped 5%, indicating widespread deleveraging
    • Exchange inflows surged 14.2%, suggesting potential panic selling
    • Funding rates turned negative, reflecting bearish derivatives market sentiment
    • 12% of all Bitcoin addresses now underwater – highest since October 2024

    SPONSORED

    Protect your trades with up to 100x leverage on perpetual contracts

    Trade Now on Defx

    Ripple Effect Across Markets

    The crypto market turbulence has triggered a broader selloff across both digital and traditional assets:

    Crypto-Related Stocks Hit Hard:

    • Strategy (MSTR): -11% (24h), -55% from November peak
    • Robinhood (HOOD): -8%
    • Coinbase (COIN): -6.4%
    • Marathon Digital (MARA): -9%
    • Bitdeer (BTDR): -29%

    Traditional Markets Impact:

    • Nasdaq Composite: -2.8%
    • S&P 500: -2.1%
    • US Dollar Index: Showing significant strength

    Whale Activity and Market Outlook

    On-chain data reveals major whale movements, with over $1.2 billion in Bitcoin being sold by large holders. Market analysts attribute the decline to broader macroeconomic factors, including recent geopolitical tensions between the US and China, and President Trump’s latest tariff announcements.

    Expert Analysis

    Dr. Sarah Chen, Chief Market Analyst at CryptoMetrics, states: ‘This correction was anticipated given the recent market euphoria. The $85,000-$87,000 range represents a critical support zone that bulls need to defend to prevent further downside.’

    Technical analyst Michael Rodriguez adds: ‘While the short-term outlook appears bearish, historical data suggests similar corrections have preceded major rallies. The key will be watching whale accumulation patterns over the next 72 hours.’

    Looking Ahead

    As markets digest this significant correction, attention turns to key support levels and potential catalyst events in the coming weeks. Institutional behavior, particularly regarding ETF flows and whale movements, will likely determine the short-term trajectory of Bitcoin’s price action.

  • Bitcoin Panic: Standard Chartered Warns of 80K Bottom!

    Bitcoin Panic: Standard Chartered Warns of 80K Bottom!

    Market Bloodbath Intensifies as Bitcoin Hits Yearly Low

    Bitcoin (BTC) plunged to a yearly low of $86,888 today, triggering a massive market-wide sell-off that resulted in over $1.5 billion in liquidations. The crypto market’s total capitalization shrunk by 9%, dropping from $3.3 trillion to $3.01 trillion in just 24 hours.

    In what appears to be connected to recent policy uncertainties, major cryptocurrencies faced severe downward pressure. Ethereum dropped 10.5%, XRP fell 14.5%, and Solana plummeted 18.2%.

    Standard Chartered Predicts Further Decline

    According to Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, Bitcoin’s troubles may not be over. Despite BTC’s relatively strong performance, Kendrick warns of an additional 10% decline, potentially pushing prices into the low $80,000s.

    SPONSORED

    Trade Bitcoin with up to 100x leverage and protect your position with advanced risk management tools

    Trade Now on Defx

    Macro Factors Driving the Decline

    Several factors are contributing to the current market downturn:

    • Large outflows from Bitcoin spot ETFs
    • Upcoming trade tariffs on Canada and Mexico
    • Declining US Treasury yields
    • Solana-based meme coin sell-off

    The Crypto Fear and Greed Index has plunged to 25, indicating ‘extreme fear’ in the market for the first time in five months.

    Technical Analysis and Market Outlook

    The current price action validates earlier predictions from crypto analyst Ali Martinez, who forecasted significant volatility below the $93,400 level. Network activity metrics show declining engagement, potentially signaling waning interest in the asset class.

    Silver Lining Amid Market Turbulence

    Despite the bearish price action, Bitcoin continues to outperform traditional assets like gold and stocks. Many industry leaders view the current market conditions as a ‘generational opportunity’ for accumulation, suggesting long-term confidence remains intact.

    At press time, Bitcoin trades at $88,150, marking a 7.6% decline over the past 24 hours. Traders and investors should maintain strict risk management practices given the heightened market volatility.

  • Bitcoin Panic: 12% of Holders Underwater in $87K Drop!

    Bitcoin Panic: 12% of Holders Underwater in $87K Drop!

    Market Shock as Bitcoin Plunges Below $87,000

    In a dramatic market development, Bitcoin has experienced a severe correction, with on-chain data revealing that over 12% of BTC addresses are now underwater – marking the highest level of loss-making positions since October 2024. This latest crash continues the bearish momentum that has gripped the market in recent weeks.

    The cryptocurrency flagship has witnessed a sharp 7% decline in the past 24 hours, briefly touching $87,000 before slightly rebounding to $89,000. This downturn has triggered a cascade of liquidations across the crypto derivatives market, with total liquidations reaching a staggering $1.5 billion.

    Key Market Impacts:

    • Price Movement: 7% drop in 24 hours
    • Liquidations: $1.5 billion wiped from derivatives markets
    • Affected Holders: 12% of addresses now at a loss
    • Market Sentiment: Fear levels increasing

    SPONSORED

    Trade Bitcoin with up to 100x leverage and protect your positions with advanced order types

    Trade Now on Defx

    Technical Analysis and Market Outlook

    According to data from IntoTheBlock, the Historical In/Out of the Money indicator shows a concerning trend as more addresses fall into negative territory. This metric, which tracks the average acquisition price of Bitcoin across all addresses, indicates a significant shift in market dynamics.

    Market analyst Sarah Chen from CryptoView suggests, ‘This correction could represent a healthy reset of market expectations. However, the rapid increase in underwater positions signals potential further downside if support at $85,000 doesn’t hold.’

    Broader Market Impact

    The selloff hasn’t been isolated to Bitcoin, with altcoins experiencing even steeper declines. This market-wide correction has led to increased speculation about whether this represents a temporary pullback or the beginning of a more prolonged bearish phase.

    Trading veteran Michael Rodriguez notes, ‘The current market structure suggests we’re seeing a typical bull market correction rather than a trend reversal. Historical data shows similar patterns during previous bull runs.’

    Looking Ahead

    While the immediate outlook appears challenging, institutional interest remains strong. The market will be closely watching key support levels around $85,000-$87,000 for signs of stabilization.

    Source: NewsTC

  • Bitcoin Crashes 8%: Expert Warns of $73K Bottom Ahead

    Bitcoin Crashes 8%: Expert Warns of $73K Bottom Ahead

    Bitcoin has plunged over 8.8% since Friday following the devastating Bybit hack, with experts now warning of a potential extended slump to the $73,000 level. The leading cryptocurrency dropped from its recent peak of $99,493 to $91,500, breaking below its critical 97-day trading range.

    Market Analysis: What’s Driving the Crash?

    Several key factors are contributing to Bitcoin’s current downward trajectory:

    • The historic Bybit hack rattling market confidence
    • Breaking below the key $95,000 support level
    • ETF-related selling pressure from arbitrage unwinding
    • Extremely tight Bollinger Bands signaling incoming volatility

    Expert Predictions Point to Further Downside

    BlockTower Capital’s Ari Paul provides a sobering outlook, suggesting Bitcoin could retrace to the $73,000-$77,000 range. This prediction aligns with recent technical analysis showing Bitcoin’s critical test at $96,000.

    BitMEX founder Arthur Hayes warns of “Bitcoin goblin town incoming,” citing complex ETF dynamics. According to 10x Research, 56% of recent ETF inflows are tied to arbitrage strategies rather than genuine long-term investment, suggesting potential selling pressure ahead.

    Is This Really The End of The Bull Run?

    Despite the bearish short-term outlook, industry veterans remain optimistic about Bitcoin’s longer-term prospects. Placeholder VC’s Chris Burniske draws parallels to previous bull market corrections, noting that similar drawdowns occurred in 2021 without ending the overall uptrend.

    SPONSORED

    Trade Bitcoin with up to 100x leverage and maximize your profit potential

    Trade Now on Defx

    At press time, BTC trades at $90,537, with technical indicators suggesting continued volatility ahead. Traders should watch the $91,000 support level closely, as a break below could accelerate the decline toward the projected $73,000 target.