Bitcoin Falls Below $85,000 in Worst Monthly Decline Since 2022 Crypto Winter

Leveraged liquidations and waning retail sentiment drive heavy losses across major cryptocurrencies, with Bitcoin erasing year-to-date gains amid global market turbulence.

BTC
ETH
SOL

Summary

Bitcoin slid below $85,000, briefly touching $81,600 before stabilizing near $84,000, marking its worst monthly drop since the 2022 crypto winter. Ether fell below $2,750 and Solana dropped over 10% in 24 hours, with overall declines of 20–35% from November highs. Nearly $2 billion in leveraged positions were liquidated in 24 hours, including a $36.7 million BTC position. U.S.-listed Bitcoin ETFs saw $900 million in net outflows, while perpetual futures open interest shrank 35% since October. The Crypto Fear & Greed Index fell to 11, signaling extreme fear. Global equities also posted sharp weekly losses, compounding the market downturn.

Terms & Concepts
  • Leveraged liquidation: The forced closure of leveraged trading positions when margin requirements are not met, often leading to rapid price declines.
  • Crypto Fear & Greed Index: A metric that gauges market sentiment for cryptocurrencies, ranging from extreme fear to extreme greed based on various indicators.
  • Perpetual futures: Derivative contracts with no expiration date, allowing traders to speculate on asset prices with continuous funding rates.