The Bitcoin rout continues to rattle the global digital asset market, with the world’s largest cryptocurrency sliding back to levels last seen in April. After hitting an all-time high above $120,000 in early October, Bitcoin has tumbled more than a third, briefly trading in the low $80,000–$90,000 range and erasing its gains for 2025.
This latest Bitcoin price crash is not happening in isolation. A broader crypto market sell-off has already vaporized hundreds of billions of dollars in value in just a few weeks, as traders unwind leverage, institutions pull money from crypto ETFs, and macro fears weigh on risk assets across the board.
Financial news outlets, including CNBC’s “Crypto World,” have framed the move with the stark headline: “Bitcoin rout continues as the cryptocurrency falls to lowest level since April.” It’s a simple description with big implications. When Bitcoin revisits old support zones after making new highs, markets are often at an emotional tipping point: bulls question their convictions, bears grow louder, and undecided investors wonder whether this is a temporary shake-out or the start of a deeper downturn. In this in-depth guide, we will break down why the Bitcoin rout continues, what is driving the latest slide to April-era levels, how this compares with past corrections, and what both short-term traders and long-term holders should be thinking about right now.
Why the latest Bitcoin rout continues to deepen
The current correction is the result of several overlapping forces rather than a single shock event. Understanding those forces helps explain why the cryptocurrency rout has been so persistent – and why volatility could remain elevated.
Macro headwinds and interest-rate uncertainty
One of the biggest drivers behind the sell-off is the macro backdrop. After months of optimism that central banks would soon cut interest rates, fresh data has revived worries that borrowing costs could stay higher for longer. Those concerns have spilled into stocks, tech, and now cryptocurrencies.
Risky assets like Bitcoin and Ethereum are highly sensitive to shifts in liquidity and investor sentiment. When markets expect easier money, speculative assets tend to rally; when those expectations fade, crypto market routs become more likely. Higher yields on government bonds offer safer returns, making volatile digital assets less attractive in comparison.
As fears about delayed rate cuts intensified, Bitcoin slid below key thresholds – first under $110,000, then $100,000, and eventually below $90,000, marking its lowest level since April and confirming that the Bitcoin rout continues across global exchanges.
Leverage, liquidations and forced selling
The modern crypto market is heavily driven by derivatives. Perpetual futures, options and leverage allow traders to amplify their positions – and their risk. When Bitcoin started to pull back from its October peak near $125,000, over-leveraged long positions were squeezed.
As prices dropped through well-watched support levels, cascading liquidations kicked in. Billions of dollars in leveraged long positions were wiped out in days, turning a regular correction into a sharp crypto crash. In some sessions, marketwide liquidations topped tens of billions of dollars, accelerating the move lower and reinforcing the narrative that the Bitcoin rout continues with no clear floor yet in place.
Forced selling doesn’t just come from traders. Large holders – often called whales – sometimes dump portions of their holdings to lock in profits or de-risk portfolios. Recent reports of a major Bitcoin whale unloading over a billion dollars’ worth of BTC only added fuel to the Bitcoin price crash and deepened the sense of panic across exchanges.New York Post
ETF outflows and cooling institutional sentiment
The launch of spot and futures-based Bitcoin ETFs brought huge institutional attention and billions in inflows earlier in the year. But the tide can turn quickly. When Bitcoin started to roll over, ETF investors began pulling money out, amplifying selling pressure.
Several products, including large U.S. and Hong Kong-listed vehicles, registered record withdrawals as prices sliced through psychological levels like $100,000 and $90,000. These ETF outflows signaled that big players were shifting to a more defensive stance, adding another layer of downward momentum as the cryptocurrency rout stretched into multiple weeks.
How this sell-off compares with previous Bitcoin crashes
For seasoned observers, this is not the first time a Bitcoin rout has made headlines. The cryptocurrency’s history is full of steep drawdowns followed by spectacular recoveries. To understand where we are now, it helps to compare this slump with earlier cycles.
2025 pullback versus earlier bear markets
Today’s decline – roughly a 30–35% drop from the October record highs – is painful but not unprecedented. In 2017–2018, Bitcoin fell more than 80% from its peak as the first major crypto bubble deflated. In 2021–2022, it lost over 70% from top to bottom during the “crypto winter” associated with the Terra-Luna collapse and a string of exchange failures. By comparison, the current correction is still in “severe bull-market pullback” territory rather than a full-blown bear market. The difference this time is the scale of the market. Bitcoin’s market capitalization, and that of the broader digital asset market, is dramatically larger now than in previous cycles. A 30% decline today can represent hundreds of billions of dollars in evaporated wealth worldwide, as shown by estimates of nearly $400 billion in crypto value erased in just one week.
Is this a healthy reset or the start of another crypto winter?
A key question for investors is whether the latest move is a typical correction in a long-term uptrend or the start of a deeper downturn. There are arguments on both sides. On the one hand, the Bitcoin rout continues in the context of a multi-year macro cycle. If rates remain elevated, liquidity tightens, and speculative tech bets cool, crypto could face sustained headwinds similar to earlier “winter” phases. The fact that Bitcoin has dropped back to its lowest level since April and erased most of its year-to-date gains is a warning sign.
On the other hand, Bitcoin has historically treated 30–40% pullbacks as routine, even within strong bull markets. Corrections can flush out excessive leverage, reset sentiment from euphoria to caution, and set the stage for more sustainable advances. Some on-chain metrics suggest that long-term holders remain relatively steady, while short-term speculators bear the brunt of the pain. Ultimately, whether this period becomes a short-lived scare or a prolonged downturn will depend on how macro conditions evolve and how quickly confidence returns to the crypto market.
The broader impact on the crypto ecosystem
When the Bitcoin rout continues, the rest of the crypto universe rarely escapes unharmed. This slump is no exception: it has shaken altcoins, DeFi tokens and even publicly traded companies tied to the digital asset space.
Altcoins under heavy pressure
Altcoins tend to be more volatile than Bitcoin both on the way up and on the way down. During this downturn, major coins like Ethereum (ETH), Solana (SOL), XRP, BNB and Dogecoin (DOGE) have all posted double-digit losses. Ethereum slid below the psychologically important $3,000 level, while other large-caps dropped between 3% and more than 5% in just 24 hours during some of the worst sessions.
Smaller projects and speculative tokens have fared even worse, as liquidity dries up and traders retreat to higher-quality names or stablecoins. In past cycles, extended crypto sell-offs have often triggered a wave of token delistings, protocol shutdowns, or funding crunches for early-stage Web3 ventures. While it’s too early to know how deep the damage will go this time, history suggests that prolonged volatility tends to separate robust projects from fragile ones.
Crypto-linked stocks and miners feel the pain
The Bitcoin rout also extends into traditional equity markets. Listed exchanges, mining companies and payment platforms that rely heavily on crypto trading volumes and prices have seen their shares slide. Recent data show companies like Robinhood and Coinbase down over 20% for the month, closely tracking Bitcoin’s reversal.AP News
Bitcoin mining firms face a double squeeze when prices plunge: revenues drop as the coin falls, while energy and operational costs remain relatively fixed. If the cryptocurrency rout persists near or below April support levels, weaker miners could be forced to shut down or consolidate, potentially impacting network dynamics and hash rate over time.
Technical and on-chain signals traders are watching
Beyond headlines stating that the Bitcoin rout continues, traders are tracking a range of technical and on-chain indicators to gauge where the market might go next.
Key support levels, moving averages and “death cross” fears
From a technical analysis perspective, Bitcoin’s drop toward the low $80,000–$90,000 region is significant because it revisits price zones that acted as resistance earlier in the year. Turning former resistance into support is often seen as a bullish long-term sign – but only if those levels hold convincingly. Recent moves have brought Bitcoin below its 50-day moving average and toward the 200-day moving average. Some analysts have noted a looming or active “death cross,” where the 50-day average falls below the 200-day, which is traditionally viewed as a bearish signal and another reason why traders say the Bitcoin rout continues for now.
If prices stabilize and reclaim these averages, it could mark the start of a recovery. If they fail, the market may test deeper support levels, potentially in the $70,000s, according to some chart-based projections.
Sentiment indicators, RSI and funding rates
Sentiment metrics provide another lens on the Bitcoin price crash. The relative strength index (RSI) has dropped to levels last seen near Bitcoin’s April bottom zone, suggesting the asset is approaching oversold territory.Cointelegraph+1
Funding rates on perpetual futures have also cooled or turned negative at times, indicating that long positions are less crowded and short sellers have grown more aggressive. At extremes, these indicators can foreshadow sharp short-covering rallies. However, they can stay depressed for longer than traders expect if the fundamental backdrop remains weak. On-chain, analysts are watching how long-term holders behave versus recent buyers. Historically, prolonged crypto market routs tend to end when long-term holders refuse to sell at discounted prices, effectively setting a floor while new demand gradually returns.
What this means for short-term Bitcoin traders
For active traders, the fact that the Bitcoin rout continues has both risks and opportunities. Volatility creates more frequent price swings, which can be profitable if managed carefully but devastating if approached with excessive leverage or emotion-driven decisions.
Short-term traders should recognize that intraday moves of 5–10% are increasingly common in this environment. Sudden rallies can occur even within a broader downtrend as short positions are squeezed and bargain hunters step in. Managing position size, avoiding over-leverage, and respecting clear stop levels are essential practices during a cryptocurrency sell-off of this magnitude. It is also crucial to stay informed. As macro headlines, ETF flow data, and regulatory news cross the wires, the narrative can shift quickly. One day’s “capitulation” can become the next day’s “relief rally.” Having a plan ahead of time – rather than reacting impulsively – is key to surviving and potentially thriving while the Bitcoin rout continues to dominate market coverage.
What long-term Bitcoin investors should focus on
Long-term investors who see Bitcoin as a store of value, “digital gold,” or a hedge against monetary debasement face a different set of questions. For them, the issue is less about the next 48 hours and more about whether the underlying thesis still holds over the next five to ten years.
Historically, every major Bitcoin price crash has looked terrifying in real time, yet each has ultimately been followed by new all-time highs once the cycle turned. This doesn’t guarantee that history will repeat exactly, but it does show how quickly the narrative around Bitcoin and the broader crypto market can flip from despair to euphoria and back again. If the answers remain broadly positive, many investors may view April-level prices as an opportunity rather than a threat, even as headlines emphasize that the Bitcoin rout continues.
Conclusion
The current environment is undeniably stressful. The Bitcoin rout continues as the cryptocurrency falls to its lowest level since April, wiping out a large portion of 2025’s gains and reminding everyone that high returns in crypto come with equally high risk. Yet volatility cuts both ways. Just as euphoria can overshoot to the upside, fear can overshoot to the downside. Whether this slump evolves into a prolonged “winter” or proves to be a sharp but ultimately healthy reset will depend on macro conditions, flows from institutions, regulatory clarity, and how quickly market confidence can rebuild.
For short-term traders, discipline, risk management and awareness of key technical and sentiment levels are vital. For long-term investors, zooming out, revisiting the original thesis, and avoiding emotionally driven decisions are just as important. One thing is clear: as long as Bitcoin exists at the intersection of technology, finance and speculation, there will be more cycles, more headlines like “Bitcoin rout continues,” and more opportunities – and risks – for those who choose to participate.
FAQs
Q. Why has the Bitcoin rout continued to the lowest level since April?
The Bitcoin rout continues due to a combination of macroeconomic worries about interest rates, heavy leverage in derivatives markets, and large-scale selling by both traders and institutional investors. Concerns over delayed rate cuts have pushed investors away from risky assets, while cascading liquidations and ETF outflows have amplified downward pressure, driving Bitcoin back to price levels last seen in April.
Q. How much has Bitcoin fallen from its recent peak?
From its record highs above $120,000 reached in early October, Bitcoin has dropped roughly 30–35%, with intraday lows in the $80,000–$90,000 range depending on the exchange. This decline has erased most of its gains for 2025 and triggered one of the steepest drawdowns since the previous major bull run, reinforcing the view that the Bitcoin price crash is more than a shallow pullback.Axios+1
Q. Is this the start of a new crypto winter?
It is too early to say definitively. The percentage drop so far is severe but still smaller than previous multi-year bear markets where Bitcoin lost over 70% of its value. If macro conditions worsen and institutional appetite continues to fade, the cryptocurrency rout could deepen into a longer winter. However, if support levels hold and on-chain data show long-term holders accumulating, this phase could ultimately be remembered as a sharp correction within a broader uptrend.
Q. How are altcoins reacting to the Bitcoin rout?
Altcoins have largely followed Bitcoin lower, often with even bigger percentage moves. Major coins like Ethereum, Solana, XRP, BNB and Dogecoin have logged double-digit declines as investors de-risk across the board. When the Bitcoin rout continues, liquidity tends to concentrate in larger, more established assets or stablecoins, leaving smaller tokens particularly vulnerable to sharp price swings and lower trading volumes.
Q. What should investors do while the Bitcoin rout continues?
There is no one-size-fits-all answer. Short-term traders should prioritize risk management, avoid excessive leverage, and trade with clear plans around entries, exits and stops. Long-term investors should revisit their thesis for owning Bitcoin, assess whether their time horizon and risk tolerance still align with that thesis, and consider dollar-cost averaging rather than attempting to time the exact bottom. Above all, staying informed, avoiding panic decisions, and recognizing that volatility is inherent to Bitcoin and the crypto market can help investors navigate this turbulent phase more calmly.
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