Crypto markets fell sharply on Tuesday, with Bitcoin sliding below $75,000 and drifting toward price levels last seen in November 2024, as traders were hit by a wave of forced liquidations while unwinding leveraged bullish positions. The decline extended losses from the weekend after Bitcoin failed to hold above the $80,000 mark, with the flagship cryptocurrency briefly wiping out gains recorded following the 2024 US election.
Market data from CoinGlass showed around $246 million worth of Bitcoin positions were liquidated over the past 24 hours, including $215 million from long positions, indicating that traders betting on a price rebound were forced out as momentum turned lower. The sell-off also triggered a sharp deterioration in sentiment, with the CMC Crypto Fear and Greed Index dropping into “Extreme Fear” at 17 on its 0–100 scale, while total crypto market capitalization fell to $2.55 trillion — its lowest level since April 2025.
The weakness was compounded by disappointing earnings from Galaxy Digital, one of the sector’s largest publicly traded firms, which reported a $482 million fourth-quarter loss driven by mark-to-market declines in digital assets and reduced trading activity. Galaxy shares fell as much as 20% in Nasdaq trading, as investors reacted to the firm’s exposure to the crypto downturn.
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Despite the steep losses, Matt Hougan, Chief Investment Officer of Bitwise, suggested the current slump may be entering its later stages. In a post on X, Hougan noted that crypto downturns historically last around 13 months, adding that he believes the current bear cycle began in January 2025 — earlier than many assume — with institutional inflows during 2025 masking the full scale of the decline across several assets.
