Bitcoin’s price experienced a significant downturn on Yesterday, breaking through essential support levels and falling close to $66,000 amid turbulent trading — indicating what seems to be the largest absolute dollar decline ever recorded for the leading cryptocurrency. The recent drop occurs amid a wider global risk-off sell-off, impacting equities, commodities, and digital assets alike. Major U.S. and Asian stock indices have shown signs of weakness amid concerns over economic growth and inflation data. This has intensified flight-to-safety flows, impacting leveraged risk assets significantly. Bitcoin’s October 2025 peak — exceeding $126,000 on major exchanges — currently stands approximately $59,000 higher than today’s lows, marking an unprecedented decline in raw dollar terms.
According to data, although earlier drawdowns have been more pronounced in percentage terms, the magnitude of this decline in nominal USD is unprecedented, surpassing the downturns observed in 2018, 2022, and other significant corrections. In comparison, previous price cycles experienced declines from approximately $20,000 to $3,000 in 2018 and from $69,000 to $15,000 in 2022 — both significant percentage decreases, yet with smaller absolute dollar shifts than the current downturn. Analysts are now characterizing the decline as the most significant dollar value drawdown in Bitcoin’s history. This week, broader markets experienced a significant sell-off, putting risk assets under considerable pressure across the board. U.S. equities experienced a significant decline, with the Nasdaq taking the hardest hit due to disappointing earnings forecasts and a downturn in sentiment within the tech sector.
Speculative commodities, such as silver, experienced a significant drop, plunging double digits and indicating a trend of widespread deleveraging. Bitcoin’s drop beneath crucial technical support levels has escalated forced liquidations and panic selling, further fueling a wider downturn in the crypto market. The total cryptocurrency market experienced a staggering loss of over $500 billion in value in the past week, as nearly all major tokens recorded substantial declines. In a notable shift, U.S.-listed spot Bitcoin ETFs have experienced ongoing net outflows, marking a reversal of the institutional capital influx that supported markets in 2025. Public firms heavily invested in Bitcoin, such as prominent holders like Strategy, have experienced a sharp decline in equity valuations in tandem with BTC, prompting concerns regarding balance sheet strain and upcoming liquidity challenges.
Yesterday, Treasury Secretary Scott Bessent informed the House Financial Services Committee that the U.S. government lacks the authority to “bail out” bitcoin or instruct banks to purchase BTC. Rep. Brad Sherman questioned him on the possibility of regulators stepping in as they did during the 2008 financial crisis, but Bessent dismissed the notion entirely. He stated that the government’s sole exposure to bitcoin prices arises from law enforcement seizures, rather than investments funded by taxpayers.