The crypto market is experiencing significant turbulence this week as Bitcoin slides to around $68,000, marking a steep decline from its October 2025 peak above $126,000. This represents a roughly 46% drop from all-time highs, with the broader market following suit.
What's happening? Bitcoin fell nearly 3% in the past 24 hours, pushing 85 of the top 100 cryptocurrencies into the red. Major altcoins like Ethereum, XRP, and Dogecoin are seeing even sharper losses, some declining over 5% in the same period. The sell-off comes despite cooling inflation data from the US, which typically would support risk assets.
The market mood is tense. The Crypto Fear and Greed Index has dropped into "extreme fear" territory, a level not seen since the FTX collapse in late 2022. Additionally, around $8.7 billion in Bitcoin losses were realized last week, suggesting some investors are capitulating and exiting positions.
Why it matters:
This correction phase is actually a healthy part of crypto market cycles. After Bitcoin's halving event in April 2024, many analysts expected volatility in 2026 as the market adjusts. Historical patterns show Bitcoin often experiences significant retracements during the "bear leg" of its four-year cycle before eventually establishing new support levels.
The current deleveraging—where over-leveraged traders are forced to close positions—is removing excess speculation from the market. While painful in the short term, this process typically leads to a more stable foundation for future growth. Market analysts note that Bitcoin needs to reclaim and hold above $68,000-$70,000 to signal a potential trend reversal.
Key Takeaways:
$BTC is trading around $68,000 after falling from $126,000 all-time highs in October 2025.
The market is in "extreme fear" mode with widespread selling across most cryptocurrencies.
$8.7 billion in realized Bitcoin losses suggest capitulation from weaker holders.
This correction aligns with Bitcoin's historical four-year cycle patterns.
Analysts view the deleveraging as healthy for long-term market stability.