Bitcoin price today:Bitcoin fell sharply in volatile Thursday trading, dropping to$88,522, its lowest level in months, as selling pressure swept across the digital-asset market. The sudden decline erased more than$1 trillionfrom the global crypto market, pushing total valuation down to nearly$3.2 trillionfrom above$4.2 trillionearlier this month. The move deepened a six-week slide in which Bitcoin has already lost more than25%from its October highs.

The sell-off accelerated after Bitcoin broke below key support levels near $92,000, triggering a wave of forced liquidations across futures and leveraged positions. Analysts say risk appetite has weakened as investors react to tighter financial conditions, rising Treasury yields, and growing expectations that the Federal Reserve may delay any rate cuts. Those macro pressures have made high-volatility assets more vulnerable, with altcoins seeing even steeper losses through the trading day.

Market focus now shifts to whether Bitcoin can stabilize above the $88,000–$90,000 zone. A sustained drop below these levels could open the door to deeper corrections, with several analysts warning of a potential slide toward $75,000, especially if liquidations continue and global risk sentiment deteriorates. Traders are watching for signs of a short-term rebound, but volatility remains elevated and sentiment remains fragile as investors wait for fresh macro data and clarity on global market direction.

Bitcoin later recovered1.9% at 8:30 a.m. in London, helped by stronger revenue guidance from a major tech giant, which cooled fears about a slowdown in global AI spending. That one shift in sentiment briefly steadied crypto markets, showing again how tightly the sector is now connected to technology and semiconductor momentum. Still, traders described the recovery as cautious. Buyers stepped in slowly. Order books stayed uneven. Many called it a reflex bounce rather than a signal of renewed confidence.

For now, the crypto world is split between caution and opportunity. Some see a moment to accumulate at lower levels. Others expect another test of support as global risk sentiment remains fragile. What is clear is that Bitcoin’s decline has reshaped the market, wiped out over a trillion dollars in value, and reminded investors how quickly the digital-asset landscape can change. The next moves will likely come fast, influenced not only by crypto-specific dynamics but also by broader tech and macro trends that now shape the entire digital-asset ecosystem.

Why is Bitcoin falling again and how deep is this new drop?

Bitcoin slipped to$88,522, marking its lowest point in seven months. The decline came quickly and spread through the market in waves. Traders reported sharp spikes in volatility, with price swings happening in seconds rather than minutes.

Many retail investors who bought during recent dips watched their portfolios shrink in real time. Large digital-asset treasury firms also absorbed losses, as premiums tied to their crypto holdings tightened or disappeared altogether. This added to the sense that the downturn was not isolated to small investors — it was hitting every level of the ecosystem.

Key levels now dominate the conversation. Traders are watching $85,000 and $80,000 closely as the next psychological markers. A clean break below either level could force more defensive positioning across derivatives markets. The deeper and more serious line lies near $74,425, the 2025 low set during April’s tariff-driven selloff. A fall toward that level would test the market’s ability to absorb more pressure without triggering another cascade. Options desks show increasing put activity around $80,000, a sign that investors are hedging aggressively.

The wipeout is massive in total value. Crypto market capitalization peaked at $4.3 trillion on October 6 but now trades near $3.2 trillion. That drop represents more than $1 trillion erased. Most of the losses are paper losses, reflecting a repricing of existing positions rather than cash actually flowing out. But the scale still matters. When valuations shrink at this pace, sentiment weakens sharply. Risk appetite collapses. Funds marking portfolios to market face tighter collateral rules. Retail investors pull back. Liquidity dries up. Every dip feels sharper than the last.

The speed of the decline has also revived concerns about market fragility. Shorter liquidity windows, faster automated trading, and bigger leverage pockets combine to amplify price moves. Analysts note that even normal-sized sell orders created outsized effects as spreads widened. That has intensified calls for more discipline, especially as global markets face shifting macro conditions. Rate expectations, geopolitical uncertainty, and tech-sector turbulence continue to feed volatility across digital assets.

Even with the downturn, some long-term investors argue that the retreat is part of a typical cycle. Bitcoin has survived deep drawdowns before, often followed by major rallies. But timing remains unpredictable. No one can say definitively whether this is a correction, a reset, or the early stages of a larger unwind. The market needs stability above $85,000 to signal confidence. Without it, traders may brace for more forced selling, especially among leveraged positions exposed to further downside.

Across trading desks, analysts said that sentiment weakened early in the week and then broke sharply once Bitcoin crossed below key support levels. The fast movement triggered more selling as automated systems and high-frequency traders moved to protect positions. This created a domino effect that deepened the slide.

Despite the rapid decline, large liquidity pools remained active, but spreads widened enough to remind investors how quickly crypto can turn. The drop also intensified conversations about whether Bitcoin had run too far too fast earlier in the year.

Did Bitcoin show any signs of recovery after the sharp plunge?

Yes — but only after outside forces helped calm nerves. Bitcoin recovered part of its losses early Thursday, rising1.9% by 8:30 a.m. in London. The rebound came shortly after a major tech company released a surprisingly strong revenue forecast, easing fears that globalAI-related spendingwas slowing faster than expected.

This mattered because weakness in AI stocks earlier in the week had spilled into crypto markets. Investors felt that if tech spending cooled, risk-on sectors like digital assets would be next. The upbeat revenue guidance pushed back against that narrative, giving markets a moment of breathing room.

Still, the recovery was measured. Buyers stepped in cautiously, and order books showed more hesitation than confidence. Some traders framed the bounce as a “technical lift” rather than a genuine shift in sentiment.

The early rebound also highlighted how interconnected global markets have become. Moves in technology stocks, semiconductor firms, and AI-linked companies now directly influence Bitcoin, making crypto more exposed to broader market cycles.

How much value has the broader crypto market lost — and does it reflect real cash leaving?

The broader crypto market has lost nearly$1.1–$1.2 trillionin six weeks as total valuation dropped from about$4.4 trillionto nearly$3.2 trillion. Bitcoin is down almost30%from its peak, leading the decline. But this wipeout does not mean the same amount of cash left the system. Much of it reflects sharp re-pricing, forced liquidations, and weaker inflows rather than direct capital flight.

Some long-term holders are still accumulating. The market shows early signs of stabilizing as valuations edge back toward $3.13 trillion, with selective buying and improving sentiment.