Bitcoin (BTC) price saw a rapid decline on Tuesday after reaching an all-time high (ATH) of over $126k on Monday. The leading cryptocurrency dropped by more than 3% in the past 24 hours, hitting a low of around $120,681 before bouncing back to trade at about $122k currently.
The broader altcoin market also experienced a dip, except for Binance Coin (BNB), PancakeSwap (CAKE), and a few other altcoins. As a result, the total cryptocurrency market cap decreased by 3.5%, hovering around $4.16 trillion at the time of writing.
Major Reasons Behind the Bitcoin Price Drop Today
1. High Leveraged Flush:
Following the sudden crypto market drop on Tuesday, more than $625 million was liquidated from leveraged traders, predominantly affecting long traders. According to data analysis from CryptoQuant, Bitcoin’s Open Interest (OI) decreased by over 5%, marking the largest single-day wipeout in six weeks.
2. Old Whales Reawakening:
After Bitcoin’s price surged to a new ATH on Monday, on-chain data analysis revealed a rise in profit-taking activities. Approximately 15k BTC, valued at nearly $2 billion, was deposited into cryptocurrency exchanges within the last 24 hours. Additionally, the largest movement of Bitcoin whales in 2025 was recorded on Tuesday, with dormant wallets from 3-5 years ago transferring 32,322 BTC, equivalent to about $4 billion.
What’s Next for BTC Price?
Despite the recent price drop, Bitcoin remains influenced by high demand from institutional investors, a favorable macroeconomic environment, and the optimistic sentiment of ‘Uptober.’ From a technical analysis perspective, BTC price is poised to rebound towards its parabolic phase in the upcoming weeks. Furthermore, Bitcoin is often referred to as digital gold, and the price of gold has been on a parabolic rise since mid-August. Additionally, the gradual increase in the global money supply bodes well for Bitcoin and the broader cryptocurrency market.
In conclusion, while the recent drop in Bitcoin price may have caused concerns, the overall outlook remains positive for the cryptocurrency. Investors are advised to conduct thorough research before making any investment decisions. As always, it is essential to stay informed and vigilant in the ever-evolving cryptocurrency market landscape.