Bitcoin experienced a sharp flash crash to $60,000, a 50% decline from its October 2025 high, resulting in $1.1 billion leveraged liquidations globally.

The crash pressures firms like MicroStrategy with BTC exposures and affects related equities, highlighting market volatility and investor concerns amid recent declines.

Bitcoin Flash Crash Triggers Major Liquidations, Market Panic

Bitcoin’s sharp crash to $60,000 sparks over $1.1 billion in liquidations, unsettling markets and traders.

Bitcoin experienced a sharp flash crash to $60,000. This represents a 50% drawdown from October 2025’s all-time high exceeding $126,000. The event marked significant liquidations in the derivatives markets over the past day.

Traders navigated through $1.1 billion in liquidations, driving the price decline. No statements from leaders such as Michael Saylor, yet MicroStrategy’s BTC position saw significant underwater levels, affecting market dynamics.

Bitcoin Drops to $60,000 Amid Massive Liquidations

The crash affected Bitcoin along with crypto-exposed equities, notably impacting MicroStrategy, miners, and platforms like Coinbase. Investors faced pressure, with substantial losses recorded across assets, raising concerns over market stability.

Insights point to potential financial pressure on miners and institutions. Analysts noted the crushing of supports around $60,000-$64,000.

The market reactions emphasized investor caution amid ongoing volatility in the crypto sector.

Drawdown Severity Exceeds FTX-Era Collapse

This 50% drawdown surpasses the severity of past events, such as the FTX-era collapse. Historical patterns show severe deleveraging cycles in Bitcoin’s market behavior are prevalent and challenging.

Expert analysis suggests long-term potential pivots for investors. JPMorgan analysts target BTC to $266,000 to rival gold’s market cap, though current levels remain below production costs, posing economic challenges.

“The large outperformance of gold vs. bitcoin since last October coupled with the sharp rise in gold volatility has led to bitcoin looking even more attractive compared to gold over the long term,” estimating a long-term BTC target of $266,000 to match private gold investment (~$8T market cap equivalent), though “unrealistic” short-term amid current pressure below production costs. — JPMorgan Analysts, Source

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