Bitcoin Price Plunges 50%, Drawdown Nears FTX-Era Crash
Bitcoin price is currently undergoing a significant selloff, with the cryptocurrency plummeting through crucial support levels and triggering massive liquidations in the derivatives market. According to data from Bitcoin Magazine Pro, the price of Bitcoin has dropped towards the $62,000 mark, marking the largest raw dollar drawdown ever recorded for BTC.
The all-time high for Bitcoin in October 2025, which was above $126,000, now sits approximately $63,000 higher than the current price levels. This downturn represents a 50% drop from the peak value of Bitcoin, placing it among some of the most extreme historical corrections for the cryptocurrency.
The sustained downtrend in Bitcoin’s price has wiped out nearly half of its peak value, while other risk assets have also been affected by global market stress and shifting macro sentiment. The severity of the selloff has been exacerbated by leveraged derivatives, leading to over $1 billion in forced liquidations over the past 24 hours. These liquidations mainly affected long positions that were automatically closed out as Bitcoin breached key support levels.
The breakdown in Bitcoin’s price comes after a retracement from levels above $90,000 just eight days ago. The cryptocurrency is now down nearly 35% over the past year and about 50% below its October peak. Thursday’s plunge saw Bitcoin breach multiple support zones, with indicators suggesting limited stops before reaching the sub-$60,000 range.
The sharp selloff in Bitcoin also spilled over into the equity markets, with crypto-linked stocks taking a hit. Major miners such as Riot Platforms and MARA Holdings experienced double-digit declines, while crypto-exposed firms like Coinbase and Robinhood also saw significant drops. The broader market downturn added to the pressure, with tech and other high-beta assets selling off alongside digital assets.
The iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF managed by BlackRock, witnessed a surge in trading volume as its price plunged by 13%, marking the second-worst one-day drop since its launch. Shares of Strategy ($MSTR) were down over 15% on the same day, with earnings scheduled to be released later.
At the time of writing, Bitcoin is trading just below $64,000, as investors closely monitor the ongoing selloff and its impact on the broader market.
