Bitcoin price (BTC USD) crashes to 15-month low, triggering $500 billion crypto market rout — Here’s what’s driving the selloff

Bitcoin BTC USD price drop: The cryptocurrency market has been under intense pressure, with a broad selloff accelerating as Bitcoin price USD slid to its weakest level in more than a year, triggering heavy losses across digital assets.

Bitcoin Price Crash: About $500 Billion Wiped Off Crypto Market in Days

Since January 29, the total crypto market value has dropped by about $467.6 billion, as per CoinGecko data. Bitcoin led the decline, falling on Tuesday to its lowest level since US President Donald Trump won re-election in early November 2024, despite expectations that a more crypto-friendly administration could support the sector.

BTC USD Price Slides to 15-Month Low as Crypto Selloff Deepens

The largest cryptocurrency touched a 15-month low of $72,877 in US trading before recovering slightly. By early Wednesday, Bitcoin was trading near $76,000 at the time of writing. Even with the bounce, Bitcoin is still down roughly 40% from its record high reached in early October.


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Bitcoin Price USD Falls to Lowest Level Since November 2024 US Election

CoinSwitch Markets Desk explained that, "BTC is consolidating near $76.5K after U.S. lawmakers narrowly approved a funding package that alleviated near-term shutdown risks and helped stabilize broader risk sentiment," adding, "The development arrested a sharp liquidation-driven sell-off that briefly pushed bitcoin to $72.8K, marking its weakest level since pre-November 2024 election highs," as per an emailed statement to The Economic Times.

Liquidations Accelerate as Leveraged Crypto Bets Unwind

The latest leg lower highlights how fragile sentiment remains following a major liquidation event in October. On October 10, about $19 billion in leveraged crypto bets were wiped out, and the broader market has struggled to recover since then.

Market structure signals continue to point to selling pressure. Alex Kuptsikevich, chief market analyst at FxPro said that, “Although there has been some rebound since the start of Wednesday, the sequence of lower local highs and lows indicates that selling on the rise prevails in the markets,” as quoted by Bloomberg.

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Global Market Volatility Adds to Bitcoin Weakness

Crypto weakness has unfolded alongside volatility in global markets. Gold and silver swung sharply during the week but managed to attract buyers after recent losses. Cryptocurrencies, by contrast, found little support. Bitcoin and US equities fell as tensions between the US and Iran rose, pushing investors toward traditional safe assets, as per the Bloomberg report.

Bitcoin Fails to Act as “Digital Gold” Amid Geopolitical Tensions

The selloff has intensified doubts about Bitcoin’s reputation as “digital gold.” During the period of heightened geopolitical risk, Bitcoin failed to act as a safe haven.

Crypto Derivatives See Over $6.6 Billion in Liquidations Since Jan 29

Derivatives markets have magnified the move. In the past 24 hours alone, more than $700 million in bullish and bearish crypto positions were liquidated in perpetual futures trading. Since January 29, total liquidations have climbed past $6.67 billion, as per CoinGlass data.

Bitcoin ETF Flows Turn Volatile as Investor Sentiment Weakens

Investor behavior in exchange-traded funds has also been uneven. US-listed Bitcoin ETFs saw about $562 million in net inflows on Monday, followed by $272 million in outflows on Tuesday, as per data compiled by Bloomberg.

BTC USD Outlook: Key Bitcoin Support at $73K as Traders Watch $78K Resistance

CoinSwitch Markets Desk told The Economic Times that, "From a technical perspective, $73K continues to act as key downside support, while a sustained reclaim of the $77.5K–78K resistance zone is required to meaningfully improve the short-term trend and restore bullish momentum."

FAQs

How much has the crypto market lost recently?
Around $467.6 billion has been wiped off the total crypto market since January 29.

What was Bitcoin’s lowest price during the selloff?
Bitcoin touched a 15-month low of $72,877 in US trading.