Conditions in the crypto market are taking on increasingly apocalyptic characteristics. In the early morning hours, Bitcoin briefly dropped toward the $60,000 level. The price later managed to stabilize around $65,000, but the move triggered a true bloodbath in crypto derivatives markets. Over the past 24 hours, positions worth a total of $2.6 billion were liquidated, with the bulk of losses borne by Bitcoin investors who had been betting on higher prices.
At the same time, selling pressure remains elevated. According to CryptoQuant, the flow of large investors—so-called “whales”—moving funds to exchanges has not eased. The largest trading venue, Binance, recorded total inflows of around 78,500 BTC, with nearly half—48.5%—attributed to whales. This is the highest level since the crisis year of 2022.
One mega-whale, however, remains unfazed despite aggregate losses approaching $8 billion—namely Michael Saylor. When Bitcoin briefly fell to $60,000, those losses temporarily swelled to as much as $11 billion. Still, in an interview with Fox Business, Saylor remained confident:
“As long as Bitcoin grows by at least 1.25% per year, Strategy can pay its dividends forever.”
An even bleaker picture is emerging for Tom Lee and his Ethereum exposure at BitMine. The publicly listed company recently purchased nearly 42,000 ETH in an attempt to partially offset losses. Even so, the portfolio has lost more than $8 billion, or over 50% of its total value.
The second-largest cryptocurrency by market capitalization is showing a similarly grim picture. Ethereum has fallen nearly 10% over the past 24 hours and is trading around $1,891 at the time of writing.
The ongoing weakness in crypto is also being driven by developments in traditional financial markets. The Nasdaq 100 index temporarily declined by almost 3.5%. Historically, cryptocurrencies—Bitcoin in particular—have often shown a correlation with the technology-heavy index.
Analysts attribute the Nasdaq’s weakness in part to persistent concerns surrounding the artificial intelligence sector. On the eve of the sell-off, Amazon CEO Andy Jassy said during the company’s earnings presentation that Amazon plans to invest around $200 billion in AI projects over the course of the year.
At the same time, Amazon disappointed markets with its first-quarter profit outlook, projecting operating income of up to $21.5 billion, below analysts’ expectations of $22.2 billion.
Additional pressure is coming from heightened geopolitical tensions in the Middle East between the United States and Iran. The U.S. embassy responsible for Tehran issued a warning urging all U.S. citizens to leave the country. Against this backdrop, expectations of a potential U.S. strike increased on the Polymarket platform, further amplifying market nervousness.
Conclusion:
The current collapse in the crypto market appears less like a short-term correction and more like a phase of systemic decline, intensified by several converging factors: falling risk appetite across global markets, rising Bitcoin inflows to exchanges from large holders, massive liquidations in derivatives markets, and escalating geopolitical tensions. The price structure—marked by a series of lower highs and lower lows—adds to suspicions of coordinated selling.
At the same time, the market is approaching levels that have historically often marked turning points: nearly half of the BTC supply is now “underwater,” and capitulation-driven moves have already flushed out excessive leverage. In the near term, volatility is likely to remain elevated, with further price action hinging on the stability of traditional markets, signals from the Federal Reserve, and the response of long-term investors to current price levels.
