Bitcoin Crash Triggers Massive Crypto Selloff and Market Rout
Bitcoin Triggers Massive Crypto Selloff
The cryptocurrency market has suffered a devastating blow, erasing nearly half a trillion dollars in value over the past week as Bitcoin spearheaded the rout. From peaks near $126,000 in October 2025, Bitcoin plunged below $70,000, marking a 40% drop that dragged the total market cap to $2.3 trillion levels last seen months ago[1][2][5]. Ethereum fared worse, shedding over 30% to around $2,070 amid heavy selling pressure[1].
Key Drivers Behind the Crash
Intense factors fueled this decline: massive ETF outflows, forced liquidations totaling $853 million in a day, and sales from entities like Bhutan offloading $22 million in Bitcoin[1][4]. Macroeconomic uncertainty, tight monetary policy, and renewed correlation with volatile US equities amplified fears, pushing Bitcoin into oversold territory per technical indicators[2]. Unlike past 80% crashes, analysts note fewer structural risks this cycle[2].
Outlook and Investor Caution
Support levels at $69,000-$74,000 may draw buyers if volatility eases, but ongoing risk-off sentiment signals caution[2]. Investors should monitor ETF flows and macro shifts, as drawdowns like this test resolve yet often precede rebounds in Bitcoin's history[3]. Staying informed remains crucial in this turbulent landscape.
