Bitcoin (BTC) experienced a massive price drop late Tuesday, sinking below $87,000 and marking a new three-month low. The cryptocurrency market witnessed a severe downturn, wiping out billions in valuation within just a few hours.
As per CoinGecko data, Bitcoin tumbled to $87,115, reflecting an 8% decline in the past 24 hours. Some digital asset trackers reported even lower values, placing BTC at $86,500 during the steepest part of the fall.
Major Cryptocurrencies Suffer Heavy Losses
Bitcoin’s slump was accompanied by double-digit losses across major altcoins, significantly impacting Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE).
- Ethereum (ETH): The second-largest cryptocurrency by market cap fell 11% to $2,500, marking one of its worst declines in recent months.
- Solana (SOL): Plunged 13.7% to $135.46, reaching its lowest level since September 2024. Over the past month, SOL has depreciated by 46.6%, erasing significant gains.
- Dogecoin (DOGE): The popular meme coin dropped 13% to $0.1192, its lowest point since November 2024. DOGE has lost 43% of its value month-over-month.
The broader financial markets mirrored the downturn in cryptocurrencies, with the Nasdaq Composite shedding over 1% amid investor concerns over trade tensions and falling AI-related stocks.
This bearish trend in the traditional financial market has intensified the risk-off sentiment, prompting a significant withdrawal from both traditional assets and digital currencies.
Impact on Crypto Investors and Future Market Outlook
The sharp downturn has wiped out millions in leveraged positions, leading to widespread liquidations across major exchanges. The current bear sentiment has raised concerns over the future trajectory of Bitcoin and other digital assets.
- Analysts suggest Bitcoin may test support levels around $85,000 before finding stability.
- If selling pressure continues, BTC could drop further to $80,000 or lower.
- A recovery above $90,000 would require significant bullish momentum and renewed investor confidence.
