Bitcoin Tumbles to $93K: Liquidations Spark Fear Index Meltdown
Market bloodbath as BTC nosedives—liquidations trigger panic across crypto derivatives.
Fear & Greed Index implodes to 2025 lows as leveraged positions get vaporized.
Traders scramble while 'HODL' memes resurface—because nothing says 'sound investment strategy' like ignoring six-figure drawdowns.
What triggered Bitcoin’s slide?
The downturn began late Sunday and accelerated into Monday’s early hours. bitcoin lost nearly 24% from its October high of $125,000, marking one of its steepest two-week corrections of the year.
According to analysts, the fall below $94,000 broke a key psychological level and confirmed a short-term downtrend. This reversal matters because Bitcoin had spent most of late 2024 in a strong uptrend.
The MOVE also reversed the bullish momentum that carried Bitcoin through November, when the Fear and Greed Index topped 90, signaling widespread euphoria. Today, the same index sits at 22, showing extreme fear.
Market analyst KillaXBT noted that Bitcoin declining over the weekend, a pattern rarely seen in recent months, set up a bearish tone for Monday. Using historical data from the past 300 days, the analyst said similar setups have a 36% probability of forming a near-term bottom at the start of the week.
$BTC
For the first time in weeks, BTC didn’t pump over the weekend, it actually moved lower. Instead of setting up the usual bullish narrative heading into Monday, this created a bearish one.
Based on the last 300 days of price action, there’s roughly a 36% chance that Monday… https://t.co/NGkkqLHtYo pic.twitter.com/3lyd1sRxdI
Mass liquidation sweep across crypto markets
The sell-off caused significant damage in the Leveraged trading space. More than 151,000 traders were liquidated, the majority of them holding long positions. In one hour alone, long traders lost $40 million, while the four-hour tally climbed to $77 million, according to Coinglass.
Bitcoin accounted for the largest chunk of liquidations at $41.6 million, followed by ethereum with nearly $14 million. Other large-cap cryptocurrencies, including Solana, XRP, and Dogecoin, followed Bitcoin’s drop, contributing to a cross-market flush of positions.
This wave of forced selling compounded the downward pressure and formed a feedback loop, with falling prices leading to further liquidations, which in turn pushed the prices further down.
Key support zones will determine Bitcoin’s next move
Analysts are now watching several critical levels to determine whether the market can stabilize. According to KillaXBT, immediate support lies around $94,100, followed by $93,500, which marks Bitcoin’s opening price for the year. A deeper support zone sits in the $89,000–$91,000 range, an area that historically shows strong trading activity.
If Bitcoin breaks below $85,000, analysts warn that bullish recovery scenarios could be invalidated. A drop below that threshold WOULD likely signal a broader trend reversal, potentially extending losses into December.
However, if Bitcoin absorbs liquidity at lower supports, analysts believe that the price might seek to revisit the $98,000-100,000 range. Reclaiming these levels would be crucial for restoring bullish confidence into year-end trading.
Tom Lee blames structural stress, not fundamentals
Amid rising fear, BitMine Chairman Tom Lee offered a different perspective. He claimed that the fall of Bitcoin is not because of the decreasing adoption and the drop in long-term confidence. Instead, he believes the drop may stem from a large hole in the balance sheet of one or more crypto market makers, which could be forcing mass liquidations.
Lee compared the situation to sharks circling weakened prey, describing how opportunistic traders might be pushing prices lower to trigger even more forced selling. Last month, he warned that Bitcoin could fall as much as 50% due to short-term structural stress.
I sat down with @fundstrat to discuss whether AI is a bubble, why this may be the most hated stock market rally in history, and how misleading economic data shapes investor sentiment.
Tom also shares his latest views on Bitcoin, Ethereum, and why innovation in crypto markets is… pic.twitter.com/5GSKz5V1X0
Despite this, Lee emphasized that the downturn is temporary. He maintained his long-term bullish stance on Ethereum and said traditional finance’s interest in blockchain remains strong.
He cautioned investors to avoid leverage in the current environment, noting that traders using borrowed money have been hit the hardest. Lee previously predicted that recovery could begin six to eight weeks after Thanksgiving, once market stress eases.
Crypto market stands at a crucial crossroads
With Bitcoin trading NEAR its lowest level in months, sentiment at extreme fear, and structural concerns rising, the crypto market enters one of its most uncertain phases of the year.
Whether buyers step in at support levels or more forced selling pushes prices down will determine Bitcoin’s direction heading into December.
Also Read: Fact Check: No, Strategy Did Not Sell $4B in Bitcoin
