Bitcoin Breaks Below $65K as a Staggering $2 Trillion Gets Wiped From the Crypto Market

Bitcoin Slides Below $65,000 as $2 Trillion Vanishes From Crypto Market Since 2025 Peak

Bitcoin fell below the $65,000 level, triggering a fresh wave of volatility across digital asset markets and intensifying concerns about the depth of the current downturn. The latest drop has compounded losses seen since the crypto market’s all-time high in October 2025, with an estimated $2 trillion wiped from total market capitalization over that period.

The move was flagged by market trackers and later confirmed by the X account of Watcher.Guru, with the Hokanews editorial team citing the confirmation as part of its reporting, in line with standard verification practices.

While sharp corrections are not unusual in crypto markets, the scale of the cumulative losses has renewed debate about macroeconomic pressures, investor sentiment, and the durability of the post-2025 bull cycle.

Source: XPost

A Key Psychological Level Breaks

The $65,000 mark has been widely viewed by traders as a critical psychological and technical support level. Bitcoin’s slide below that threshold prompted accelerated selling, as stop-loss orders were triggered and short-term traders moved to reduce exposure.

Analysts say breaks of widely watched levels often have an outsized impact, not because of fundamentals alone, but due to market structure. Automated trading strategies and derivatives positioning can amplify price moves once support fails.

The result was a rapid decline that reverberated across major cryptocurrencies, pulling down prices and erasing significant market value in a short period of time.

Measuring the $2 Trillion Market Cap Loss

Since the crypto market reached its peak in October 2025, total market capitalization has declined by roughly $2 trillion. This figure reflects not only Bitcoin’s retracement, but also steep losses across altcoins, decentralized finance tokens, and NFT-related assets.

Market strategists note that such drawdowns, while dramatic, are not unprecedented in crypto history. Previous cycles have also seen trillions of dollars evaporate during prolonged corrections. However, the absolute scale of losses grows as the market itself becomes larger, making the current downturn particularly striking.

The erosion of market cap has had tangible effects on investor confidence, especially among participants who entered near the peak.

What Is Driving the Sell-Off

Several factors appear to be converging behind the latest decline. Macroeconomic uncertainty remains a dominant theme, with investors reassessing risk exposure amid changing interest rate expectations and uneven global growth.

Liquidity conditions have also tightened. As capital becomes more selective, speculative assets such as cryptocurrencies are often among the first to see outflows. In addition, regulatory developments in key jurisdictions continue to create uncertainty around the long-term operating environment for digital assets.

On-chain data suggests that some long-term holders have begun to distribute holdings, while leveraged positions across derivatives markets have been unwound, adding further downward pressure.

Impact Across the Crypto Ecosystem

Bitcoin’s move below $65,000 has had cascading effects across the broader crypto ecosystem. Altcoins, which typically carry higher risk profiles, experienced sharper percentage losses, while decentralized finance protocols saw increased liquidations as collateral values fell.

NFT markets and Web3-related tokens have also felt the strain, as declining asset prices reduce speculative demand. Together, these dynamics illustrate how tightly interconnected the crypto ecosystem has become, with Bitcoin still acting as the primary anchor for market sentiment.

Despite the sell-off, infrastructure such as exchanges, lending platforms, and custody providers has continued to function normally, avoiding the operational stress seen in earlier market crashes.

Investor Sentiment Turns Defensive

The cumulative drawdown since October 2025 has shifted investor behavior noticeably. Market participants are increasingly favoring capital preservation over aggressive growth, reducing leverage and rotating into more liquid positions.

Some analysts argue that this defensive posture may ultimately help stabilize the market by flushing out excess speculation. Others warn that sentiment-driven declines can overshoot fundamentals, creating conditions for further downside before a durable bottom is formed.

Retail investors, in particular, appear more cautious, with trading volumes showing signs of moderation compared with peak bull market activity.

Historical Context and Market Cycles

Viewed through a historical lens, Bitcoin’s current decline fits a familiar pattern. Crypto markets have repeatedly experienced sharp expansions followed by deep corrections, often retracing a significant portion of prior gains.

What distinguishes the current cycle is the level of institutional participation. Compared with earlier downturns, a larger share of Bitcoin is now held by long-term investors, funds, and corporate entities. This could influence how the market behaves in the months ahead, potentially reducing panic selling while prolonging consolidation.

Analysts emphasize that cycles tend to resolve not with a single dramatic event, but through extended periods of range-bound trading and gradual sentiment repair.

The Role of Media and Verification

In fast-moving markets, accurate reporting is essential. The confirmation provided by Watcher.Guru helped validate the scale of the market cap decline and Bitcoin’s move below $65,000. Hokanews cited this information as part of its coverage, while avoiding unnecessary repetition, consistent with common media standards.

Clear sourcing and proportional context are particularly important during downturns, when exaggerated claims can amplify fear and volatility.

What Comes Next for Bitcoin

Attention now turns to whether Bitcoin can stabilize above lower support levels or if further declines are likely. Technical analysts are watching zones below $65,000 as potential areas of demand, while macro-focused observers are monitoring economic data and policy signals for clues about risk appetite.

A sustained recovery would likely require a combination of improved liquidity conditions, clearer regulatory outlooks, and renewed conviction among long-term investors. Absent those factors, the market may remain under pressure in the near term.

A Stress Test for a Maturing Market

The loss of $2 trillion in crypto market capitalization since October 2025 represents a significant stress test for an industry that has grown rapidly over the past decade. While painful, such corrections are often seen as part of the maturation process, forcing weaker projects out and refocusing attention on fundamentals.

For Bitcoin, falling below $65,000 is a notable milestone, but not necessarily a definitive verdict on its long-term trajectory. As history has shown, periods of sharp decline are often followed by consolidation, rebuilding, and eventual recovery.

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Writer @Ethan
Ethan Collins is a passionate crypto journalist and blockchain enthusiast, always on the hunt for the latest trends shaking up the digital finance world. With a knack for turning complex blockchain developments into engaging, easy-to-understand stories, he keeps readers ahead of the curve in the fast-paced crypto universe. Whether it’s Bitcoin, Ethereum, or emerging altcoins, Ethan dives deep into the markets to uncover insights, rumors, and opportunities that matter to crypto fans everywhere.

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