Bitcoin dropped more than 10% within a single day, reaching a low of $75,700, the first time below $80,000 since April 2025.

Scale of the decline

From its October peak of $126,000, the asset has lost over 35% of value, reflecting a rapid unwind in market positions.

About $111 billion of market capitalization evaporated in 24 hours, while liquidations exceeded $2.53 billion across exchanges.

Long positions accounted for $2.41 billion of those liquidations, indicating a cascade of forced closures among bullish traders.

Altcoins and broader market impact

Major altcoins also declined sharply during the same session, amplifying downside pressure across crypto markets.

• Ethereum down 13%.
• Solana down 14%.
• XRP down 10%.

MicroStrategy exposure and balance-sheet notes

The company identified as Strategy holds 712,647 BTC with an average purchase price of $76,037 per coin, placing the position temporarily net negative on paper.

Analysts note that most of the firm’s $8.2 billion debt comprises convertible bonds maturing between 2027 and 2032, which reduces the immediate risk of margin-driven asset sales.

Accordingly, no margin calls or forced liquidations are expected in the near term, according to the same analysis.

On-chain signals and flows

CryptoQuant founder Ki Young Ju reports that Realized Cap stopped rising for the first time in 2.5 years, suggesting a pause in net capital inflows to the network.

Long-term holders are realizing profits at an estimated rate of about 12,000 BTC per day, which adds selling pressure to the spot market.

Spot Bitcoin ETFs registered record outflows of $4.57 billion across November–December 2025, further weighing on prices.

Outlook

Market commentators do not anticipate a recursive 70% collapse like prior bear cycles and cite structural changes from large institutional holders.

Those participants, including long-duration corporate treasuries and ETF providers, create liquidity dynamics that may favour an extended sideways market rather than a rapid capitulation.

For a sustained recovery, the market will likely need either easing from the Federal Reserve or renewed capital inflows to reverse recent trends.