Bitcoin (BTC) endured one of its sharpest sell‑offs of 2025, plunging to nearly $81,000 in a sudden flash crash that rattled the cryptocurrency market. Within hours, the world’s largest digital asset briefly tested support near $78,000 before recovering slightly to trade around $81,500–$82,000. The collapse wiped out more than $2 billion in leveraged positions in just 24 hours, underscoring the fragility of a market already on edge.
Flash Crash Wipes Out Billions
The drop marked Bitcoin’s steepest intraday decline since April 2025. Stop‑loss orders clustered between $81,000 and $90,000 triggered cascading liquidations, with traders exposed to leverage as high as 20x to 100x. Automated selling drained liquidity, reducing exchange depth to barely 5% of normal levels. Altcoins were not spared: Ethereum (ETH) tumbled to $2,700, while XRP slid below $2.
Macro Headwinds Add Pressure
The crash coincided with renewed global economic tensions. Fresh U.S. tariffs — including a 10% levy on all imports and up to 54% on Chinese goods — reignited trade frictions, prompting risk‑averse investors to retreat from crypto. Strong U.S. jobs data and the Federal Reserve’s reluctance to cut interest rates in December further dashed hopes of looser monetary policy, amplifying the sell‑off.
Extreme Fear Grips Investors
According to the Crypto Fear & Greed Index (CFGI), sentiment plunged to “extreme fear” levels. Bitcoin has now erased all gains made in 2025, falling nearly 30% from its peak of $126,000. Institutional flows mirrored the panic: ETF outflows hit $278 million on November 12, reversing earlier inflows of $524 million.
Technical Breakdown Confirms Bear Market
Analysts pointed to bearish chart patterns — including a death cross on the daily chart, where the 50‑day moving average slipped below the 200‑day — as confirmation of a deeper downturn. Bitcoin’s 200‑week moving average currently sits near $56,000, a level many see as critical support. Historical data also suggests bull market peaks typically occur 12–18 months after a halving, aligning with October’s sell‑off when long‑term holders and whales offloaded positions.
Veteran Trader Peter Brandt Predicts $200K Future Rally
Despite the turmoil, veteran trader Peter Brandt — known for accurately calling Bitcoin tops and bottoms — argued the crash could ultimately benefit the market. On November 21, he predicted Bitcoin could rally to $200,000 in the next bull cycle, expected around Q3 2029. Brandt disclosed he still holds 40% of his BTC, purchased at prices far below current levels, and described the downturn as the “best thing” happening to Bitcoin.
Brandt previously warned of a potential drop to $58,000, identifying $81,000 and $58,000 as key support zones. He cautioned that many traders who claim they will buy aggressively at $58K may capitulate once prices approach $60K. His forecasts echo broader bearish analyses from firms such as 10x Research and CryptoQuant, which have highlighted macro headwinds and technical weakness.
Market Outlook
At present, Bitcoin trades near $84,262, down more than 8% in 24 hours, with intraday lows of $82,082 and highs of $92,346. Trading volume surged 38% as panic selling swept through exchanges. While short‑term sentiment remains bleak, Brandt and other cycle analysts believe the current bear market sets the stage for a powerful rebound in the years ahead.
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