Bitcoin News Today: $1.5B Crypto Crash Shocks Traders, Is Your Portfolio Safe?

Bitcoin’s latest price crash has sent shockwaves through the market, wiping out $1.59 billion in liquidations in just 24 hours. More than 390,000 traders were caught off guard, with long positions making up 90% of the losses. One trader on Justin Sun’s HTX exchange lost a staggering $39.62 million in a single trade.

With BTC plunging to $86,000—its lowest since November—investors are asking the big question: Is this just another dip, or the start of something much worse? The sell-off comes as ETF outflows rise, Trump’s EU tariff threats shake investor confidence, and the Bybit hack adds to the chaos.

So, is Bitcoin gearing up for a rebound, or should traders brace for more pain? Let’s break it down.

Bitcoin Sees Biggest Three-Day Drop Since FTX

Bitcoin just experienced its largest three-day decline since the 2022 FTX crash, falling 12.6% between Monday and Wednesday. Several factors are weighing on the market, including:

• Weak institutional demand as big investors hesitate to buy in.
• Tighter fiat liquidity, making it harder for new money to enter crypto.
• Regulatory uncertainty in the U.S., with no clear progress on crypto policies.

Adding to the pressure, the Nasdaq index has been struggling, dragging Bitcoin and other risk assets down with it. Noelle Acheson, author of Crypto is Macro Now, also pointed out that rising inflation expectations and potential Trump tariff hikes are adding to investor fears.

How Low Can Bitcoin Go?

With Bitcoin breaking below its $90,000–$110,000 range, analysts predict further downside. Markus Thielen, founder of 10x Research, expects BTC to drop to $72,000–$74,000 before finding support. Another important level is $82,000, identified as a demand zone based on short-term holder data.

Crypto analyst Willy Woo believes the drop to $82K was mainly due to Bitcoin’s link to the stock market, rather than large investors selling. He sees $75K as an important level but notes that BTC is oversold, which could lead to a bounce.

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Will Bitcoin Recover?

Despite the bearish outlook, some analysts believe Bitcoin could soon stabilize. BTC’s dual role as both a risk asset and a store of value may attract new buyers looking for a good entry point. If BTC holds above $82,000, a rebound could follow.

Regulation could also be a game-changer. A recent U.S. Senate hearing on digital asset regulations has raised hopes for clearer rules, which could bring in more institutional investment. Matt Mena from 21Shares believes that if the U.S. provides clear guidance on stablecoins and crypto assets, it could open the door for a new wave of institutional capital.

If you’re worried about Bitcoin’s drop, remember: historically, BTC corrections are often followed by major rallies. While short-term dips can be stressful, many investors see them as part of the natural price cycle.

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