Bitcoin Plunges Below $92K, Ethereum Under $3K as Liquidations Hit $800M

Bitcoin’s dramatic descent to just under $92,000 represents a stunning reversal from its recent position firmly above $100,000, with the current price marking the lowest level since April 24. The decline began last Thursday when Bitcoin plummeted into five-digit territory and has continued unabated, with the latest drop occurring just minutes before market analysis. Ethereum has mirrored this downward trajectory, breaking below the crucial $3,000 support level and registering weekly losses exceeding 15% and monthly declines over 22%.

The carnage extends throughout the altcoin market, with XRP dropping 3.6% daily and Solana plunging over 5% in the same timeframe. This broad-based decline suggests systemic issues rather than isolated asset weakness, with the entire digital asset ecosystem experiencing synchronized selling pressure. The rapid deterioration from Bitcoin’s recent peak above $107,000—achieved less than a week ago following positive US developments—highlights the volatility and fragility of current market conditions.

The excessive leverage employed by traders has resulted in catastrophic consequences, with more than 150,000 market participants facing liquidation daily. The total value of liquidated positions has surged to almost $800 million within the same timeframe, creating a cascade of forced selling that exacerbates the downward price pressure. Data from CoinGlass reveals the scale of individual losses, including a single massive liquidation on Hyperliquid worth $96.51 million—one of the largest individual position liquidations in recent memory.

This liquidation spiral represents a fundamental shift from previous market corrections, where external factors typically drove price declines. According to analysis from the Kobeissi Letter, the current downturn appears primarily driven by the unwinding of over-leveraged positions rather than industry blowouts, global pandemics, or macroeconomic uncertainty that characterized earlier crypto crashes. The concentration of liquidations suggests that traders had become overly optimistic following Bitcoin’s brief surge above $107,000, positioning themselves with dangerous levels of leverage that proved unsustainable when the market reversed.

Analysts have determined that Bitcoin has entered a new structural bear market, with the landscape deteriorating significantly since initial warnings emerged. This assessment suggests that the current downturn may represent more than a typical correction, potentially indicating a fundamental shift in market structure and participant behavior. The absence of clear external catalysts distinguishes this decline from previous crypto winters, pointing instead to internal market mechanics and speculative excess as the primary drivers.

The persistence of selling pressure despite the absence of traditional negative catalysts—such as regulatory crackdowns, exchange failures, or macroeconomic shocks—underscores the unique nature of this market phase. With Bitcoin failing to stage any meaningful recovery after last Thursday’s initial breakdown and instead continuing to establish new multi-month lows, the technical damage appears substantial. The simultaneous weakness across major cryptocurrencies including Ethereum, XRP, and Solana confirms the broad-based nature of this structural shift, suggesting that recovery may require significant time and fundamental catalyst changes rather than simple technical bounces.