Bitcoin in crisis: record sales cause the price to fall to its lowest point!

Bitcoin in crisis: record sales cause the price to fall to its lowest point!

On Tuesday, Bitcoin fell to a two-week low of $111,500 after a sharp sell-off rocked markets. This sell-off was triggered by significant liquidations of long positions, which contributed to panic selling among short-term holders. These developments ensured that Bitcoin's volatility remained stable at 1.1% over a seven-day period, despite the heavy liquidations that took place in the industry. The average daily trading volume for Bitcoin last week was $2.3 billion, a decrease of 12% compared to the previous week. Bitcoin’s 30-day volatility fell to 1.33%, nearing yearly lows.

Most notably, Monday saw the fourth-largest liquidation of long positions in 2025, while the broader crypto market saw a total of $1.6 billion in liquidations. Bitcoin futures open interest remains high at 305,000 BTC, with only 2,600 BTC mined during selling pressure. It is also noticeable that the Spent Output Profit Ratio (SOPR) of short-term holders fell below 1. This suggests that buyers who recently acquired Bitcoin are now selling at a loss.

Market development and institutional interest

In total, investors transferred 30,000 BTC, worth $3.39 billion, to exchanges at a loss. New whale investor wallet addresses realized losses of $184.6 million, while older whale addresses shed $26.3 million during the pullback. Despite these declines, institutional demand for Bitcoin remains strong. Companies such as Strategy and Metaplanet have increased their positions in Bitcoin, underscoring the confidence in the cryptocurrency among professional investors.

Spot ETF inflows over the past week show signs of strong buying activity on pullbacks. This could indicate that interest in Bitcoin remains high even among institutional investors.

Market analysis and Bitcoin dominance

Furthermore, in the current market environment, the Altcoin Season Index has fallen from over 80 to 65. In this context, Bitcoin's dominance has increased to 57%, while Ethereum's share has fallen to 12%. Despite the current sell-off, Bitcoin has managed to remain in a range between $110,000 and $120,000 in the current quarter, with volatility depressed overall due to increasing attention on altcoins.

Bitcoin is currently trading around $111,600, down 0.7%. Investors remain curious to see how the situation will develop in the coming days, especially given the volatile market performance and ongoing liquidations.

For further details and current developments, please refer to the reporting by FXStreet.