Bitcoin enters bear territory after shedding 30% gains in 2025; volatility surges on $700m liquidations

Bitcoin prices crashed to a six-month low on Monday, even though the U.S. government’s reopening last week was expected to stabilise markets. With this, BTC has shed over 30% gains accumulated since the start of 2025, prompted by factors such as tightening liquidity and dimming hopes of a US Federal Reserve rate cut. At the time of filing the report, BTC prices recovered marginally to $95,599.25, though they are still down by 0.53% in the past 24 hours. Falling to its lowest level since February, BTC plunged to $92,971.17 during the intra-day trading, registering over 10% decline in the past week and witnessing the 3rd consecutive week in red.

Officially entering the bear territory, BTC has seen a major downswing in just over a month after it hit a lifetime high of $126,000 on October 6, 2025. In the past 24 hours alone,149,238 traders liquidated their position, with the total liquidations coming in the highest at around $700 million. BTC liquidations stood at $245.07 million, followed by ETH at $168.09 million. The largest single liquidation order happened on Hyperliquid with BTC-USD value worth $30.60 million, according to Coinglass data. Crypto markets have shifted into a clear risk-off sentiment, moving in tandem with the broader pullback across global assets. 

The sharp rise in volatility, including more than $700 million in liquidations over the past day, shows traders rapidly scaling back leverage as expectations around monetary easing and near-term liquidity soften, says Riya Sehgal, Research Analyst, Delta Exchange. “Bitcoin on-chain patterns point to measured profit-taking by long-term players, behaviour that typically appears in the later stages of an expansionary phase. Technically, BTC remains constrained beneath major moving averages, with immediate resistance around $101,500–$103,200 and key support near $98,500. A clean break of that floor could open room toward the mid-$96,000s,” says Sehgal.

The current BTC trajectory has pushed investors into “extreme fear” as the Fear & Greed Index dropped to 10, its lowest level since February 2025. Ethereum is also under stronger technical pressure, declining more than 5% after surrendering the $3,350 level. Analysts believe that unless it recovers the $3,350–$3,500 zone, momentum is likely to stay defensive.

Other major cryptocurrencies are also trading in red, with DOGE falling the highest at 1.21%. Weekly basis, Cardano tops the chart with a 15.76% fall, followed by Solana at -15.41% and Ethereum at -11.31%.

BTC, after making a new all-time high of $126,199, witnessed a sharp fall as the price plunged almost 20% to $102,000. Following this move, the asset traded in a range between $116,000 and $107,000, forming a ‘Symmetrical Triangle’ pattern. BTC gave a breakout below the range and made a low of $93,005. “The asset has a strong support zone between $92,000 and $90,000. If it holds and sustains above this support, we may see some recovery, whereas a break and close below it could lead to further downside,” said Harish Vatnani, Head of Trade, ZebPay.

Macro pressures continue to weigh on prices 

One of the big drivers of BTC price is ETFs, which, since their approval in 2024, have become a key pillar of institutional support by absorbing selling pressure during periods of profit booking and market uncertainty. The recent price swings highlight how thin overall liquidity has become, especially when large holders or ETFs adjust exposure in a compressed window. “When order books are shallow, even moderate selling can trigger outsized moves, and that is exactly what we have seen. This is not unusual during periods of macro uncertainty, but it reinforces why traders must approach the market with stronger risk frameworks,” says Avinash Shekhar, Co-Founder & CEO, Pi42.

Edul Patel, CEO of Mudrex, agrees that the recent ETF outflows are closely linked to the U.S. government shutdown and strengthening dollar, rather than any loss of faith in Bitcoin itself. “This pattern was seen earlier as well when $2.61 billion weekly outflow in February 2025 was followed by a strong rebound and steady inflows through May, reinforcing Bitcoin’s long-term institutional appeal.”

Other than deeper institutional participation via ETFs, industry participants say a sustained demand rebound for Bitcoin will depend on several core enablers: improved liquidity, clearer regulatory frameworks, and broader user adoption. “With the shutdown resolved, liquidity conditions are expected to normalise, which historically supports recovery in Bitcoin demand. In that sense, early signs of a rebound are beginning to emerge,” says Sumit Gupta, Co-founder & CEO CoinDCX.