Bitcoin has plunged below $88,000 for the first time since January 2, dragging the entire cryptocurrency market down with it.
The sudden sell-off erased more than $250 billion from the total crypto market capitalization in just three days, leaving investors reeling from the worst losses of 2025.
At a Glance
- Bitcoin dropped to $87,800, marking a 19-day low
- XMR led altcoin losses with a 15% daily decline
- Total crypto market cap fell below $3.1 trillion
- Why it matters: The crash wiped out all gains from crypto’s strong start to 2025
Bitcoin’s $10,000 Collapse
The world’s largest cryptocurrency has lost over $10,000 in value since hitting $98,000 last week. The dramatic reversal caught many traders off guard after Bitcoin spent several days trading comfortably above $95,000.
The selling pressure intensified Monday morning when Asian futures markets opened. Bitcoin initially dropped from $95,500 to $92,000, briefly recovered to $93,500, then continued its descent through Tuesday.
The cryptocurrency touched a low of $87,800 in early trading Wednesday before clawing back above $89,000. Despite the modest recovery, Bitcoin remains down 2% in the past 24 hours and 6% for the week.
Bitcoin’s market capitalization has shrunk to $1.78 trillion, while its dominance over alternative cryptocurrencies sits at 57.5%.
Altcoin Bloodbath
The pain extends far beyond Bitcoin. Alternative cryptocurrencies have suffered even steeper losses, with several posting double-digit declines.
Worst Performers (24 hours):
- XMR: -15% (now trading below $500)
- HYPE: -8% (trading at $21)
Major Alts Hit Hard:
- Ethereum dropped from $3,300 to below $3,000
- XRP fell from $2.10 to $1.90
- BNB lost the $900 support level
- TRX declined 3% daily
Only a handful of tokens managed to stay green during the carnage. CC gained 7% while WLFI rose 5%, making them rare bright spots in an otherwise sea of red.
Market Capitulation
The cryptocurrency market’s total valuation has crashed below $3.1 trillion, according to CoinGecko data. This represents a staggering $250 billion destruction of wealth since Monday morning alone.
The rapid decline has undone all the positive momentum built during crypto’s strong start to 2025. Just weeks ago, the market was celebrating widespread gains across major cryptocurrencies.
This week’s reversal marks one of the sharpest crypto sell-offs in recent months, with both Bitcoin and altcoins giving up substantial portions of their 2025 gains.
Trading Implications
The sudden downturn has shifted market sentiment from greed to fear in a matter of days. Bitcoin’s failure to hold above the psychologically important $90,000 level has triggered cascading sell orders across the cryptocurrency ecosystem.
The timing proves particularly painful for traders who entered positions during last week’s rally to $98,000. Many had anticipated Bitcoin would finally break through the coveted $100,000 barrier.
Instead, the cryptocurrency finds itself battling to maintain support above $87,000, with further downside pressure remaining a distinct possibility.
What’s Next
Bitcoin’s dramatic reversal from $98,000 to under $88,000 represents one of its steepest three-day declines in recent memory. The cryptocurrency has now given up all gains achieved during its strong start to 2025.
With the total crypto market cap sitting just above $3 trillion, the coming days will determine whether this represents a temporary pullback or the beginning of a more significant correction.
The speed and severity of this week’s losses have caught many market participants off guard, highlighting the continued volatility inherent in cryptocurrency markets despite growing institutional adoption.
Key Takeaways:
- Bitcoin crashed below $88,000, its lowest level since January 2
- XMR and HYPE led altcoin losses with 15% and 8% daily declines respectively
- The crypto market lost over $250 billion in three days
- Total market capitalization fell below $3.1 trillion
- Only CC and WLFI posted gains during the widespread sell-off
