Bitcoin Hits $89K as Market-Wide Panic Spreads

Bitcoin fell 6% during Asian trading hours, reaching $89,000. Historical patterns suggest that BTC could potentially correct down to its realized price of $55,000. The selling pressure extended to major altcoins like Ethereum, XRP, BNB, Solana, and Cardano. Ethereum dropped 16% over the week to $2,948, its lowest in five months. Popular tokens such as DOGE, SOL, ADA, and XRP saw losses ranging from 5% to 9%, reflecting the broader market downturn.

Over $1 Billion Liquidated Across Exchanges

According to Coinglass, more than 180,000 traders were liquidated in the last 24 hours, with total liquidations surpassing $1 billion. The largest single position liquidated was a $96,480 BTCUSD long on Hyperliquid. Trend altcoins like Zcash and Telcoin fell over 10%. The total crypto market cap dropped 1.2 trillion dollars in just over a month, now standing at $3.08 trillion.

Fear & Greed Index fell to 11, signaling extreme market caution. Some investors, however, began buying the dip, seizing opportunities amid the sharp decline. The majority of liquidations came from long positions, with approximately $720 million in longs liquidated and $280 million in shorts.

ETF Outflows Add to Selling Pressure

Spot Bitcoin and Ethereum ETFs continue to see net outflows. Farside Investors data shows $254.6 million withdrawn from Bitcoin ETFs in a single day, including $145.6 million from BlackRock IBIT and $34.5 million from Grayscale Bitcoin Mini Trust. CoinShares reports highlight outflows in BTC, ETH, XRP, and SOL funds. Meanwhile, Solana ETFs saw limited inflows, and Ethereum ETFs recorded $182.7 million in net outflows over five consecutive days. Grayscale ETH products saw minor inflows, reflecting some dip-buying sentiment after a 39% drop from ATH. Overall, the market trend shows that ETF investors are not providing significant support during this crypto market decline.

Exchange Breakdown: Liquidation Rates

Liquidation data reveals differences across exchanges. Hyperliquid led with $35.20 million in liquidations, 96.48% of which were long positions. Bybit saw $22.13 million liquidated, with 87.42% longs. Binance experienced $12.33 million in liquidations with a more balanced long-short ratio. OKX recorded $8.26 million in liquidations, with shorts comprising 52.67%. This indicates that leveraged long positions were most affected by the current market downturn.

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This expectation led to a 1.2% loss in Bitcoin and the overall crypto market. The total crypto market cap dropped approximately 1.23% to $3.29 trillion. Although the Consumer Price Index (CPI) and Producer Price Index (PPI) announced in May were below expectations, the Fed maintains a cautious stance. For example, Ether fell 2.8% to $2,506.90, XRP declined 2.7% to $2.13. Cardano and Solana dropped 3–4%, Polygon decreased by 2.3%. Among meme tokens, Dogecoin lost over 3%, and $TRUMP declined more than 4%. 

Geopolitical factors also increase volatility. The Israel–Iran tension pushed oil prices up. This situation brings inflation expectations back on the agenda, pressuring risk assets. 

In Bitcoin, downside supports stand at $108,000 and critical resistance is at $112,000. Analysts, especially based on CME FedWatch data, do not expect any change in interest rates. 

Jerome Powell to Speak Today 

Despite political pressure from Donald Trump, the FOMC meeting will most likely conclude without an interest rate change. Inflation rose slightly from 2.3% to 2.4% in May. This limited increase, combined with a strong labor market, strengthens the likelihood that the Fed will continue its “wait and see” policy. On the other hand, rising oil prices and Israel–Iran tension indicate that inflationary pressures may increase. Jerome Powell is expected to highlight these global risks in his speech. 

Additionally, stablecoin regulation was approved in the US Senate; however, its impact has not yet eased the market in the short term. The market remains in a waiting pattern. 

Bitcoin miners are also noteworthy during this period. While coping with drought and energy costs, they are known to be preparing for new demand. The US-China trade war and Trump tariffs are causing structural changes in the mining hardware supply chain. However, detailed data has not yet been updated. Institutions are closely monitoring a possible increase in the M2 money supply. 

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Crypto Market Decline in Early 2025: The Harshest Crash in History?

The cryptocurrency market has experienced a significant decline since the start of 2025, with some investors describing this cycle as the most painful crash in history.

Some investors have been disappointed due to industry policy changes and the memecoin craze in the U.S., while others speculate that talent within the sector is shifting towards other industries. Despite the current market situation seeming bleak to some, this downturn is not the harshest decline in history, and many in the community still maintain their bullish expectations.

Lucien Bourdon’s Market Insights: “Part of the Process”

Trezor analyst Lucien Bourdon offers the following perspective: “For those who have experienced multiple cycles, this is part of the process.”

Crypto Market After Trump’s Transition

The current market downturn followed Bitcoin’s peak of over $106,000 in December 2024, marking its highest price ever. This surge was largely attributed to Donald Trump’s victory in the U.S. presidential election, which sparked optimism in the market.

However, Arthur Hayes, co-founder of BitMEX, accurately predicted that there would be a crypto sell-off after Trump’s transition of power. Following this, Bitcoin lost more than 18% of its value, and the overall crypto market capitalization dropped by 25%, nearly wiping out all gains from Trump’s victory.

Bitcoin Price Chart Since October 2024

The Worst Selloff in Crypto History: Mt. Gox Crisis

However, the recent selloff is not the worst decline on record. Lucien Bourdon from Trezor explains, “If we’re talking about the worst Bitcoin cycle, the 2014-2015 period was probably the harshest.” During this time, the collapse of the Mt. Gox exchange led to a 70% loss in Bitcoin’s trading volume, and the market experienced an 85% decline.

Falling Prices and Progress in Global Crypto Products

Brett Reeves, Head of BitGo Europe Sales, stated that the current market conditions involve “much more than just falling prices.” In addition to past major price declines, Reeves highlighted progress in global crypto products and regulations, noting that crypto assets are becoming an increasingly integral part of the international financial system.

Industry Leaders: “This Cycle Is Actually a Bull Market”

Some industry leaders see the current market cycle as a bull market. Mati Greenspan, founder of Quantum Economics, remarked, “Actually, this is the best one.” He elaborated, explaining that the distinguishing feature of this bull market is the absence of hyperinflationary money printing alongside price increases over time. “While this pullback may cause short-term pain, it will pave the way for long-term gains.”

A Different Perspective from Miles Deutscher: “This Market is Different”

Crypto analyst Miles Deutscher believes that terms like “bull market,” “bear market,” “cycle,” or “altseason” are not appropriate for the current market condition. “This is now a different market,” he concluded.

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