Bitcoin is currently experiencing a significant drop in price, causing a wave of liquidations that are hitting leveraged traders hard.
In the past 24 hours, BTC has plummeted from $74,300 to a low of $66,800, resulting in a total of $1.42 billion in liquidations, as reported by CoinGlass.
Long traders are bearing the brunt of the losses, with $1.24 billion in liquidations recorded.
The majority of liquidations are affecting Bitcoin traders, with $655 million in long positions liquidated, followed by Ethereum at $262 million in long positions liquidated.
Speculation continues on when this downward trend may come to an end.
The chief investment officer of Bitwise, a digital asset manager, suggests that the crypto market may be closer to a recovery than many anticipate. He argues that the current downturn actually began earlier than perceived and could be approaching its latter stages.
Matt Hougan states that the crypto market entered a “full-blown crypto winter” as early as January 2025, although substantial institutional inflows masked the decline for major assets like Bitcoin (BTC) and Ethereum (ETH).
He points out that historically, crypto winters tend to last around 13 months, citing previous cycles in 2018 and 2022. He suggests that the current downturn may be more advanced than investors realize.
Hougan predicts that crypto winters typically conclude not with excitement, but with widespread exhaustion and negative sentiment.
“Crypto winters usually last about 13 months. For example, Bitcoin peaked in December 2017 and hit bottom in December 2018. It peaked again in October 2021 and bottomed in November 2022.
By that measure, we might be in for a challenging period. After all, Bitcoin peaked in October 2025. Should we wait until next November?
I don’t think so.
The more I analyze the current ‘winter,’ the more I realize it began back in January 2025. We just couldn’t see it because ETF flows and Digital Asset Treasuries (DATs) obscured the situation.”
Hougan also highlights ongoing regulatory advancements, institutional acceptance, stablecoin growth, and tokenization as positive factors that could drive a future rally once sentiment improves.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Generated Image: Midjourney
