- Bitcoin faces sharp downturn, erasing nearly 29% from its peak.
- Major altcoins like Ethereum and XRP also feel the pressure.
- Over $5 billion liquidated as volatility shakes cryptocurrency market.
Bitcoin has recently seen a significant decline, leading to a broader downturn in the cryptocurrency market. After falling below the $91,000 mark for the first time since April 22, Bitcoin dropped by 28% from its all-time high.
This sudden shift intensified when the cryptocurrency slipped under the $90,000 threshold, marking the first time it had done so in seven months. Consequently, the market experienced a nearly 29% pullback from its peak on October 6, with widespread volatility rippling through major altcoins.
Pressure Mounts on Altcoins
The market correction hasn’t been limited to Bitcoin alone. Leading altcoins such as Ethereum (ETH), XRP, and Binance Coin (BNB) have all faced pressure. Ethereum, the second-largest cryptocurrency, now hovers around $2,990 after a 6% decline.
XRP is holding steady at $2.15, despite facing short-term recovery challenges. Binance Coin, meanwhile, is trading close to $899, reflecting a similar downtrend. Additionally, tokens like TRON (TRX), Dogecoin (DOGE), and Cardano (ADA) are also experiencing downward price movements.
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Mass Liquidations and Market Losses
The ongoing volatility has triggered massive liquidations across the market. In just the past week, more than $5 billion in positions were liquidated, mainly due to leveraged traders caught in the market’s abrupt movements. As a result, the total market valuation has plummeted, erasing an estimated $1.2 trillion, or nearly 28% of the market’s total worth, within a span of 42 days.
Bitcoin’s Resilience in the Face of Market Volatility
Despite the recent downturn, Bitcoin’s history shows that it has weathered much deeper corrections in the past. According to The Kobeissi Letter, Bitcoin has endured over 10 separate drops of 25% or more since 2017. In fact, there have been six instances where the price fell by 50%, and three major crashes of 75%. On each occasion, Bitcoin eventually recovered and reached new all-time highs.
Caution and Optimism Moving Forward
Looking ahead, some industry experts remain optimistic. A report by Coinbase and Glassnode suggests that Bitcoin could climb above $130,000 in the coming months, bolstered by growing institutional demand, strong long-term holders, and a steadily rising exchange-traded fund (ETF) market.
However, they also caution that inflation concerns and decisions by central banks could weigh heavily on market sentiment, potentially affecting Bitcoin’s performance in the short term.
As the market prepares for the final quarter of 2025, all eyes are on Bitcoin’s ability to recover and surpass its previous high. Despite the ongoing pullback, Bitcoin’s long-term outlook continues to be supported by institutional investors and the expanding global interest in cryptocurrency.
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