Nearly every crypto investor watched in horror as Bitcoin plummeted to $79,170 on March 10, 2025. The 14% nosedive marked BTC’s lowest point since November 2024, leaving traders scrambling to make sense of the carnage. So much for digital gold, right?
The sell-off wasn’t just brutal—it was historic. Trading volume exploded by 118% as panic gripped the market. Bitcoin now sits a painful 27% below its all-time high of $109,588. The damage wasn’t contained to BTC either. The broader crypto market cap collapsed to $2.53 trillion, with Bitcoin’s dominance slipping to 41.2%. A staggering $1 trillion has vanished from the market in just two months.
Market carnage on full display as $1 trillion evaporates and Bitcoin crumbles 27% below its ATH.
Leverage traders got absolutely wrecked. Over $692 million in positions were liquidated, with $216 million in Bitcoin longs wiped out in the blink of an eye. The largest single liquidation? A eye-watering $32.09 million on Binance. Ouch.
Technical indicators paint a grim picture. The RSI dropped to 33.2, approaching oversold territory. Bitcoin crashed through its 200-day moving average at $83,370, now trading below all major moving averages. Not good.
Institutional investors aren’t helping matters. Bitcoin ETFs recorded their fourth consecutive week of outflows, totaling $867 million last week alone. The 4-week total now stands at a whopping $4.75 billion in outflows.
The macroeconomic backdrop is the real villain here. Trump’s recent comments intensified recession fears, while announced government spending cuts spooked investors. Selling pressure in equities contributed significantly to Bitcoin’s decline. The price declined dramatically from its previous peak of $92,000 before entering the current downturn. The upcoming CPI and PPI data have markets on edge. Capital is fleeing to traditional safe havens like gold.
Sentiment has predictably tanked. The Fear and Greed Index shows “Extreme Fear” at 22, while social media mentions of “crypto crash” skyrocketed 300%. This dramatic shift is typical of bear market behavior where social sentiment rapidly turns from optimism to widespread negativity. Google searches for “Bitcoin bottom” jumped 150%.
Will this be the crash that finally breaks crypto’s spirit? Analysts are divided. But long-term hodlers? They’ve seen this movie before.
