Bitcoin fell below 80,000! The triple truth of the 6% plunge: bubble bursting and the game of human nature under the ebb of liquidity

Nakamoto 2025-10-14 00:14 7672人围观 BTC

The calmness of the cryptocurrency market in 2025 was suddenly broken: Bitcoin plummeted by more than 6% in a single day, falling below the key mark of 80,000 US dollars in one fell swoop, hitting a new low in the past three months. Accompanying the price

The calmness of the cryptocurrency market in 2025 was suddenly broken: Bitcoin plummeted by more than 6% in a single day, falling below the key mark of US$80,000 in one fell swoop, hitting a new low in the past three months. Accompanying the price collapse was the $2.21 billion leveraged liquidation tragedy and the flight of $680 million in ETF funds. Panic spread like dominoes. This plunge is no accident, but the inevitable result of the Fed's policy shift, the out-of-control market leverage and the resonance of the crisis of trust. It also exposed the deep flaws in the pricing logic of crypto assets.

Core promoter: The Fed's policy reversal drained away the liquidity foundation. The root cause of Bitcoin's plunge lies in the complete reversal of expectations for global liquidity easing. As a typical risk asset, the price of Bitcoin is highly bound to the liquidity of the US dollar - when the Federal Reserve releases a easing signal, cheap funds will flood into the crypto market and push up valuations. ； And when the policy turns to tightening, the bubble will burst. Recently, Federal Reserve officials have released intensive hawkish remarks, clearly suppressing the market's illusions about multiple interest rate cuts this year. This signal directly cuts off the supply of funds in the crypto market: on the one hand, rising capital costs make investors more inclined to withdraw from high-risk Bitcoin and instead invest in traditional safe-haven assets such as the US dollar and US bonds. ； On the other hand, rising borrowing costs have made it more difficult to maintain leveraged transactions, paving the way for subsequent liquidations. This policy transmission effect has been fulfilled many times in history. During the 2022 Federal Reserve interest rate hike cycle, Bitcoin fell from US$69,000 to US$15,000, and the current plot is partially repeating itself. What is even more alarming is that the U.S. tariff policy has exacerbated market liquidity tensions. The latest tariff measures have led to an increase in global trade costs, and the three major U.S. stock indexes have collectively plummeted. The Dow Jones and Nasdaq fell 1.9% and 3.56% respectively, and risk assets have suffered a comprehensive sell-off. As a "barometer" of risk appetite, Bitcoin has naturally become the hardest hit area for capital flight.

Fatal Acceleration: The Death Spiral Triggered by Leverage Liquidation If the Federal Reserve policy is the "trigger", then excessive leverage trading is the "dynamite barrel" that triggers the plunge. The high speculative nature of the crypto market has given rise to widespread leverage operations - investors only need to pay a margin of 10% or less to leverage more than 10 times the funds for transactions. This model can amplify profits during rising periods, but will instantly trigger a chain liquidation during falling markets. When the price of Bitcoin fell below the key stop loss level of $82,000, a large number of leveraged accounts triggered forced liquidation. The platform's automatic selling mechanism further depressed prices and triggered more account liquidations, forming a death spiral of "price drop - forced liquidation - further drop". Data shows that nearly 70% of the $2.21 billion in liquidated positions in a single day came from highly leveraged positions of more than 5 times, which shows the crazy speculative sentiment in the market. Behind the out-of-control leverage is the continued deterioration of the financial situation. Bitcoin ETF outflows exceeded US$680 million in a single week, setting a record for the largest single-week net outflow of the year. As an important source of incremental funds in the market, the withdrawal of funds from ETFs means that institutional investors are leaving the market collectively. This is in sharp contrast to the funding frenzy when Citigroup predicted in July 2025 that it would "rise to US$135,000 by the end of the year." The market's long and short forces have undergone a fundamental reversal.

Collapse of trust: Exchange hacking incident intensifies panic and spreads The fragility of the crypto market was fully exposed in this plunge, and the theft of $1.46 billion in ETH from the CEX exchange became the last straw that crushed investor confidence. The core value of crypto assets relies on "decentralized trust", but in reality, most transactions still rely on centralized exchanges, and their security loopholes directly impact the foundation of the market. The hacker attack triggered a chain reaction: on the one hand, investors were worried about the safety of their assets, and they withdrew their coins from the exchange or sold them directly, further intensifying the selling pressure. ； On the other hand, regulatory attention to the encryption market has increased sharply, and the market is worried that stricter regulatory policies are about to be introduced. This crisis of trust and the price collapse formed a vicious cycle, leading to a depletion of market liquidity - buyers had a strong wait-and-see attitude, and a small amount of selling would trigger large price fluctuations. It is worth noting that panic is highly contagious. The plunging comments on social media and intensive media reports amplified investors' anxiety, prompting more people to join the selling ranks. This kind of irrational group behavior caused the short-term price drop of Bitcoin to far exceed the reasonable range of fundamentals, forming a panic cycle of "the more it falls, the more it sells, and the more it sells, the more it falls." The puzzle of the market outlook: 64,000 or 135,000? Survival logic amid differences Facing the plunge, the market fell into sharp disagreements: Citigroup had previously predicted that Bitcoin could rise to US$135,000 by the end of the year, and could reach US$199,000 under an optimistic scenario ； However, pessimistic expectations are that if regulations worsen or the economy becomes unstable, the price may fall to $64,000. The essence of this disagreement is the difference in perception of the core value of crypto assets. In the short term, the market is still in the risk release stage. At present, Bitcoin has not yet given a clear signal to stop falling. If the Federal Reserve continues to maintain a hawkish stance and the aftermath of the leveraged liquidation is superimposed, the price may further test the support level of 75,000-78,000 US dollars. Investors need to be wary of the "bottom buying" trap and avoid blindly entering the market before panic dissipates. In the medium to long term, the trend of Bitcoin will depend on three major variables: First, the direction of the Federal Reserve’s monetary policy. If inflation subsequently falls and easing is resumed, funds may return to the crypto market. ； The second is the flow of ETF funds. The recovery of institutional allocation demand is the key to the price rebound. ； The third is the degree of perfection of the supervision and security system. Only by establishing a more reliable trust mechanism can asset valuations return to rationality.

Conclusion: The plunge is the touchstone of a bubble, and it is also a watershed in recognition. The plunge of Bitcoin below $80,000 is essentially a "naked swimming test" after the liquidity ebbs. It once again proves that crypto assets have not yet gotten rid of their dependence on US dollar liquidity, and the positioning of so-called "decentralized safe-haven assets" still needs time to be tested. The carnival and bust of leveraged trading also confirms the iron law of investment that "high returns must be accompanied by high risks". For investors, this plunge is both a warning and an opportunity: a warning to stay away from excessive leverage and abandon the short-term speculative mentality. ； The opportunity lies in that when market sentiment returns to rationality, cryptoassets that truly have technical value and application scenarios will highlight their investment value. As history shows, every plunge is a process of market clearing, and the investors who survive are often those few who see through the essence and fear risks. Statement: The copyright of the first cover image and accompanying images of the article belongs to the copyright owner. If the copyright owner believes that his work is not suitable for everyone to browse or use for free, please contact us in time and this platform will make corrections immediately. The market is risky and investments must be made with caution.