Bitcoin Price Analysis: BTC Plunges Below $75,000, Analysts Flag Risk Of Further Downside
Bitcoin (BTC) slumped to a low of $74,502 on Coinbase early on Monday as the crypto market selloff continued unabated. The downtrend has seen BTC lose nearly $800 billion since hitting its all-time high of $126,000 in October 2025. It also knocked the flagship cryptocurrency out of the global top ten assets, as crypto liquidations hit $2.6 billion.
The US Dollar recovery after Kevin Warsh was nominated as the next Federal Reserve Chair, escalating tensions between the US and Iran, and unprecedented liquidations have sparked panic across crypto, gold, silver, and US Stock futures. The cryptocurrency market cap has plunged to $2.57 trillion, down nearly 3% over the past 24 hours.
Crypto Selloff Due To Low Liquidity: Analyst
Raoul Pal, founder and CEO of Global Macro Investor, believes the market capitulation over the weekend, which saw $250 billion wiped out, is due to a shortage of liquidity, rather than a crypto-specific issue. Pal stated,
The big narrative is that BTC and crypto are broken. The cycle is over.
However, Pal explained that this is not the case, highlighting a similar decline in Software as a Service (SaaS) stocks. Bitcoin and SaaS stocks have fallen significantly in recent sessions. The decline is noteworthy as both assets are considered long-duration assets, with their value based on expected future cash flows and adoption. This makes them highly sensitive to changes in liquidity and interest rates.
The rally in gold essentially sucked all marginal liquidity out of the system that would have flowed into BTC and SaaS. There was not enough liquidity to support all these assets, so the riskiest got hit.
The situation has been exacerbated by the government shutdowns and “issues with US plumbing.”
Investors Pull $2.8B In Two Weeks
Bitcoin (BTC) is currently trading below the average cost basis of US spot Bitcoin ETFs after they recorded their second and third-largest outflow weeks in January. According to CoinGlass data, spot Bitcoin ETFs have $113 billion in assets under management, and hold around 1.28 million BTC at an average cost basis of around $87,830 per Bitcoin. BTC plunged below $75,000 early on Monday, indicating that the average Bitcoin ETF purchase is now underwater. Galaxy’s head of research, Alex Thorn, stated,
This means the average Bitcoin ETF purchase is underwater.
Spot Bitcoin ETFs saw over $2.8 billion in outflows over the past fortnight, according to CoinGlass data. Meanwhile, Nick Ruck warned that waning demand could push Bitcoin into a bear market. Ruck stated,
The crypto market continues its sell-off as Bitcoin falls to around $76,000 amid heightened macro uncertainty, while the proposed US CLARITY Act stalls. Despite Trump’s crypto-friendly pick for the next Fed chair, investors are de-risking due to continuous geopolitical conflicts and dollar instability as the US economy struggles between rising unemployment and inflation. BTC may enter into a bear market if it continues to drop further, as technical indicators showcase long-term sell pressure patterns forming if demand doesn’t recover soon.
Strategy Stares At Unrealized Losses
Michael Saylor’s Strategy is staring at a $900 million unrealized loss. The company’s Bitcoin stash turned red after the asset fell below $75,000, slightly lower than its average holding cost of $76,037 per Bitcoin.
As Bitcoin fell below $75,000, Michael Saylor’s Strategy’s 712,647 BTC is facing an unrealized loss of over $900 million.
Strategy recently announced its latest Bitcoin acquisition, purchasing 2,932 BTC for $264 million for the week ending January 25. A fresh decline could put substantial pressure on Strategy’s stock and Bitcoin holdings.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) slumped to its lowest level in April 2025 early on Monday, falling to a low of $74,502 before rising to its current level of $77,536. The decline has been attributed to trade tensions, macroeconomic uncertainty, persistent selling pressure, and thin liquidity. Analysts stated that long-term holders are also locking in their profits after last year’s rally, and expect BTC to trade sideways rather than embarking on an immediate recovery.
The weekend selloff wiped out around $111 billion from the total crypto market capitalization, while around $1.7 billion in leveraged long and short positions were liquidated. The downturn comes amid declining liquidity and waning investor interest, suggesting that the market is struggling to attract new capital. Ki Young Ju, CEO of CryptoQuanty, stated that Bitcoin’s realized capitalization has flatlined.
Bitcoin is dropping as selling pressure persists, with no fresh capital coming in. Realized Cap has flatlined, meaning no fresh capital. When market cap falls in that environment, it’s not a bull market.
Ju added that early Bitcoin holders have been sitting on significant unrealized profits after the Strategy and Bitcoin ETF-driven rally. However, profit-taking has continued, and is currently coinciding with a steep drop in demand, amplifying the ongoing downtrend.
Early holders are sitting on big unrealized gains thanks to ETFs and MSTR buying. They’ve been taking profits since early last year, but strong inflows kept Bitcoin near 100K. Now those inflows have dried up.
Strategy, one of the biggest drivers of the recent rally, has seen the value of its holdings dip into the red after Bitcoin’s drop to $75,000. However, the decline does not create any immediate financial concern for the Bitcoin treasury company. Wu added that a substantial decline in Bitcoin prices is unlikely unless Strategy starts selling its stash.
MSTR was a major driver of this rally. Unless Saylor significantly dumps his stack, we won’t see a -70% crash like previous cycles. Selling pressure is still ongoing, so the bottom isn’t clear yet, but this bear market will likely form a wide-ranging sideways consolidation.
Bitcoin (BTC) ended the previous weekend in the red, dropping nearly 3% on Sunday to $86,561. The price recovered on Monday, rising almost 2% to cross $88,000 and settle at $88,250. Buyers retained control on Tuesday as the flagship cryptocurrency rose 0.98% to $89,116. BTC briefly crossed the $90,000 mark on Wednesday and reached an intraday high of $90,476 before settling at 89,162.
Source: TradingView
Selling pressure returned on Thursday as BTC plunged over 5% to $84,513. Buyers retained control on Friday as the price fell to $81,000 before settling at $84,110. Selling pressure intensified on Saturday as BTC plunged below the key $80,000 mark, falling to a low of $75,644 before settling at $78,648. Price action remained bearish on Sunday as BTC fell 2.24% to $76,895. The current week started with BTC falling to $74,502, its lowest level since April 2025. However, it has clawed back to reclaim $77,000 and is trading around $77,670.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.