Bitcoinâs recent crash happened due to a mix of heavy selling pressure and high leverage liquidation. After $BTC failed to hold key resistance and support levels, whales and short-term traders started taking profits. This triggered massive long liquidations in the futures market, increasing sell pressure and accelerating the downside move. Panic selling from retail traders made the drop sharper within a short time frame.
On the macro side, risk-off sentiment dominated global markets. Strong USD, interest rate uncertainty, and capital rotation toward safer assets reduced demand for Bitcoin. Additionally, ETF outflows and miner selling added extra pressure. Such corrections are common in Bitcoinâs market cycle and often act as a reset phase, clearing weak hands and creating opportunities for long-term accumulation rather than signaling the end of the bull trend.
