Bitcoin plunges to 21-month low as $1.4B in liquidations rocks crypto markets

Bitcoin dropped to $58,131 on June 25, marking its lowest price since September 2024. That’s a staggering fall from grace for an asset that was trading above $126,000 just eight months ago.

The selloff triggered more than $1.4 billion in liquidations over 24 hours, with the overwhelming majority hitting long positions.

How bad is the damage

Bitcoin’s weekly losses now sit at 6.6%. After touching that intraday low, the price staged a modest bounce to around $59,460, still down roughly 2.6% on the day.

The Crypto Fear & Greed Index, which measures market sentiment on a scale from 0 to 100, cratered to 13. That puts the reading firmly in “Extreme Fear” territory.

Bitcoin hit a record high above $126,000 in late 2025, powered by optimistic pro-crypto policies and institutional inflows. The current price represents a decline of more than 53% from that peak.

The global cryptocurrency market cap has shrunk from its October 2025 peak of approximately $4.28 trillion to around $2 trillion. Altcoins have suffered even steeper percentage losses than Bitcoin.

What’s driving the selloff

Roughly $10 billion worth of Bitcoin options were set to expire on Deribit on June 26. Large options expirations tend to create gravitational pull on prices as market makers hedge their positions, and analysts expect the expiry to inject additional volatility into an already fragile market.

Ongoing geopolitical tensions and broader risk-off sentiment have pushed investors away from speculative assets. Investors have also been redirecting funds toward AI and other high-growth technology sectors.

The technical picture is flashing red

Bitcoin is now trading below its 200-week moving average. This indicator has historically served as a dividing line between bull and bear markets. The last time Bitcoin spent meaningful time below this level, it was during the 2022 bear market that followed the collapse of FTX and Terra.

What this means for investors

The immediate concern is whether the options expiration on June 26 will trigger another leg down. With $10 billion in contracts settling, there’s meaningful risk of additional price dislocation, particularly if market makers need to unwind hedges in thin liquidity conditions.

The shrinkage from $4.28 trillion to $2 trillion in total crypto market cap means reduced liquidity, which means higher volatility on lower trading volumes.

Investors still committed to crypto exposure should be watching the $55,000 to $58,000 range closely. A sustained break below could open the door to significantly lower prices, while a hold and recovery above the 200-week moving average would be the first sign that the worst might be behind us.

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