Bitcoin's price sank sharply on Friday, briefly trading around $80,500 before bouncing back into the mid-$86,000 range. The move marked Bitcoin’s lowest level since April 2025 and left the asset roughly 35% below its October record near $126,000. Trading desks reported liquidations and thin order books during the drop, which reinforced “risk-off” conditions across markets.
On-chain indicators show stress near levels last seen during the November 2022 FTX collapse. Glassnode data showed a surge in realized losses, led by short-term holders who bought within the past three months and are now selling at a loss. Analysts also noted that Bitcoin traded more than 3.5 standard deviations below its 200-day average, a rare signal that previously appeared during major market washouts.
Several factors coincided with the slide. Funding rates on major perpetual futures turned sharply negative as leverage exited. Spot volumes rose while bid depth fell, which worsened the air pocket. Some analysts linked the weakness to tighter global liquidity and a pullback in U.S. tech shares. Others pointed to the October 10 tariff-driven liquidation event, which left exchanges less willing to extend credit. The mix kept traders cautious into the weekend.
Even amid the sell-off, large asset managers continue to frame Bitcoin mainly as a store of value. Robbie Mitchnick, head of digital assets at BlackRock, said most institutional clients buy Bitcoin for its “digital gold” role rather than for payment use cases. He added that broader payment adoption remains possible but depends on scaling upgrades to Bitcoin’s base layer and the Lightning Network.
Mitchnick contrasted Bitcoin with stablecoins, which he described as the leading crypto payment tool today. He said stablecoins already support retail transfers, corporate treasury flows, and cross-border settlements. Market observers see this distinction as important for demand, since many ETF and fund buyers treat Bitcoin exposure more like a macro hedge than a payments bet.
Prominent investors have taken differing actions during the downturn. Robert Kiyosaki, author of Rich Dad Poor Dad, disclosed that he sold about $2.25 million worth of Bitcoin after buying it earlier at around $6,000 per coin. He said he moved the proceeds into two surgery centers and a billboard business, aiming for about $27,500 in monthly cash flow by early 2026.
Kiyosaki also said he remains bullish on Bitcoin and plans to rebuild holdings from future cash flow. His sale reflects a broader pattern of investors rotating gains into income-producing assets while keeping long-term exposure to crypto. With volatility elevated and short-term holders still reducing risk, traders now watch whether Bitcoin can stabilize above recent lows or faces another test of support.
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