The recent drop in Bitcoin’s value has been nothing short of catastrophic, marking one of the most intense downturns in cryptocurrency history. In just a few hours, over $19 billion worth of positions were wiped out, forcing more than 1.6 million traders to exit the market. This event stands as the largest liquidation ever recorded, leaving many altcoins down by over 80% and investors questioning if Bitcoin’s bullish run has reached its peak.
Bitcoin Price: Is the Bull Run Over?
Despite this harsh decline, data doesn’t necessarily indicate an end to the bull cycle. Bitcoin is now over 1,050 days into its current cycle — similar to previous peaks in 2017 and 2021 — yet today’s environment differs significantly. The current dynamics are less about Bitcoin’s halving schedule and more influenced by global liquidity trends and traditional economic cycles.
While global M2 growth has plateaued recently, interest rate cuts are anticipated for late 2025. Historically, lower rates have led to strong rallies for Bitcoin as cheaper credit encourages risk-taking behavior.
Bitcoin Price: Resetting Derivatives Market
A staggering $19 billion in leveraged positions disappeared within hours due to cascading liquidations that drove crypto markets downward. This movement was intensified by excessive leverage rather than widespread spot selling activity. Funding rates have plunged deeply negative—the most bearish since October 2023 when BTC hovered around $28,000—often signaling major local bottoms followed by sharp recoveries.
Bitcoin Price: Stable Fundamentals
Amidst derivative chaos, on-chain data paints a calmer picture. Long-term holders aren’t offloading large amounts, with supply metrics like coin days destroyed remaining low-key. The spent output profit ratio briefly turned negative indicating recent buyers sold at losses—a typical mid-cycle shakeout pattern. Supply-adjusted coin days destroyed continues trending downward confirming long-term holder conviction remains robust.
Bitcoin Price: Divergence Between Sentiment and Network Activity
The market sentiment plunged into extreme fear levels historically followed by strong rebounds . The active address sentiment indicator also dropped below its lower band indicating significant price deviation from underlying network activity ; &69;ve&114;y dip this cycle coincided with discounted buying opportunities ; &65;n advanced NVT signal along with short-term holder realized price suggests BTC trades below new entrants’ average cost basis—a zone consistently marking accumulation opportunities during bull markets ;
Bi&116;c&111;i&110;&32;&80;r&i&c&e&; &77;a&c&r&o&eamp;c;o&m&p;a&t;i&c &66;a%c;k%d&r&o&p;
%69;q%75ity %109a%72kets present immediate risks %45f stocks maintain their position %44itcoin will likely recover alongside broader risk assets Gold Silver already resumed uptrends supporting hard assets remain favorable BTC performance relative these determine whether it matures digital gold rather speculative equity proxy
<%68%%62t%gt
Bitcoi%n P%iice Conclu%sion
This liquidation event proved devastating for traders relying heavily on leverage but structurally beneficial overall It cleared excessive speculation reset funding rates created conditions often preceding next upward leg Spot accumulation ETFs corporations persists while supply dynamics stay tight
For further insights watch video Is Bitcoi%n BulluMmarket ReallY Over?
For comprehensive data charts professional insights visit Bitcoi%nMagazinePro.com
Disclaimer Article informational purposes only not financial advice Always conduct own research before making investment decisions
This post Bitcoi%n PriCe Crash Sparks Debate OveR Bull Market Fate first appeared on Bitcoi%n Magazine written Matt Crosby