Bitcoin price plunges, wipes $1 trillion from value weeks after it hit all-time high — prices now near lowest level for the year, erasing 2025 gains

by

Bitcoin price plunges, wipes $1 trillion from value weeks after it hit all-time high — prices now near lowest level for the year, erasing 2025 gains

When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works .

(Image credit: Getty / TravelStoxPhoto) Bitcoin just dropped to around $90,000, marking its lowest level since late March and early April when it traded for around $80,000. According to Financial Times , this has wiped out $1.2 trillion in value from the crypto since it peaked at over $125,000 in October 5 . Although BTC slowly dropped in value after it hit its record high, the biggest drop happened on October 10 after U.S. President Donald Trump threatened to massively increase tariffs on Chinese goods in retaliation for Beijing’s rare earth export controls. The cryptocurrency’s value went downhill after that, with Bitcoin now suffering an almost 30% loss in value from the first week of October.

Despite the current administration’s pro-crypto stance, higher interest rates from the Federal Reserve make cryptocurrency a less lucrative asset for investors. After all, a higher interest rate would offer greater returns on bonds and savings accounts, which are a lot safer than volatile tokens. And with experts now unsure if the Federal Reserve will reduce interest rates in December, there’s more incentive for BTC holders to liquidate their positions.

Analysts also say that the highly leveraged trades that some investors engage in are increasing the downward pressure on the price of Bitcoin. “Crypto investors love leverage,” said Bitwise Asset Management head of research Ryan Rasmussen to FT. “What we see time and time again is that traders get out over their skis. They think this time is different.” As BTC fell below $90,000, liquidations of short and long positions on the cryptocurrency and other top tokens reached over $1 billion in just a single day.

Best PC builds for gaming 2025: From $500 budgets to $4,000+

Key considerations

  • Investor positioning can change fast
  • Volatility remains possible near catalysts
  • Macro rates and liquidity can dominate flows

Reference reading

More on this site

Informational only. No financial advice. Do your own research.

Related posts:

  1. Bitcoin price plunges, wipes $1 trillion from value weeks after it hit all-time high — prices now near lowest level for the year, erasing 2025 gains
  2. Bitcoin price plunges, wipes $1 trillion from value weeks after it hit all-time high — prices now near lowest level for the year, erasing 2025 gains
  3. Bitcoin price plunges, wipes $1 trillion from value weeks after it hit all-time high — prices now near lowest level for the year, erasing 2025 gains
  4. Bitcoin price plunges, wipes $1 trillion from value weeks after it hit all-time high — prices now near lowest level for the year, erasing 2025 gains

Leave a Comment