Bitcoin Crashes Below $63K: The Perfect Storm Hitting Crypto
The market is bleeding. Here is what is actually happening.
Bitcoin just did something it has not done in months — it broke below $63,000. After peaking at an all-time high of $126,000 in late 2025, the king of crypto has now lost 50% of its value.
The total crypto market cap has slid to $2.19 trillion, down 5.5% in 24 hours. The last time we saw levels this low consistently? September 2024.
Three Forces, One Storm
This is not one thing. This is a perfect storm of macro pressure and institutional capitulation.
1. The Trump Tariff Shock
President Trump announced a new 15% global tariff framework after a Supreme Court ruling struck down previous trade strategies. The immediate result? A massive risk-off rotation. Investors are fleeing volatile assets like Bitcoin for traditional havens like gold. When the macro tide turns, crypto does not swim upstream.
2. Institutional De-risking
Mining giant Bitdeer just sold its entire Bitcoin reserve — over 940 BTC. That is not a vote of confidence in a near-term recovery. Meanwhile, the Coinbase Premium has turned deeply negative, meaning US institutions are leading the exit while retail holds the bag.
According to CryptoQuant, large investors who bought in the last six months now sit on $26 billion in unrealized losses. That whale stress is becoming alarming.
3. The Software-mageddon Correlation
Bitcoin has become increasingly correlated with high-growth tech and AI stocks. As investors question ROI on massive AI expenditures, a software-mageddon hit the NASDAQ. Hedge funds? They are liquidating their most liquid assets — often Bitcoin — to cover margin calls on equity portfolios.
The Liquidation Cascade
Over $360 million in long positions were liquidated in the last 24 hours alone. That forced selling fuels the spiral downward. This is how crashes become self-reinforcing.
Ethereum is struggling to hold $1,800. Solana, XRP, and the alts are seeing double-digit drops. Even Vitalik Buterin has been selling — 1,869 ETH worth $3.67 million over two days.
Capitulation or Double Bottom?
Here is where it gets interesting. If we see a rebound by end of day, we could be looking at a double bottom formation — historically a setup for a 10% bounce.
But if we fail to recover? The next support is the psychological $60,000 level. A daily close below that could trigger true capitulation. Below that lies the $50,000–$53,000 zone where the 50-week moving average meets long-term support.
On Polymarket, 75% of traders are betting Bitcoin falls below $55K. 62% are betting on sub-$50K. 47% say we see $45K.
The Bottom Line
This is not just a pullback. This is a stress test of the entire market structure that formed after the 2024 bull run.
The bulls need to defend $60K. The bears smell blood. And the macro backdrop is not helping anyone.
Stay sharp. Stay patient. And watch those support levels.
— CryptoPulse
