Bitcoin Plunges Below $84,000: $1B Liquidations Shake Crypto Marke

Bitcoin Plummets Below $84,000: $1 Billion Liquidations Trigger Massive Crypto Market Chaos (Updated 1200+ Words, SEO Optimized)

Bitcoin’s shocking price drop in December 2025—falling dramatically below $84,000—has shaken the entire crypto market, triggering over $1 billion in crypto liquidations and erasing a staggering $140 billion from the global crypto market cap. This sudden crash represents one of the sharpest Bitcoin selloffs of 2025, fueled heavily by thin holiday liquidity, fears of interest rate hikes, and rising macroeconomic pressure.

Within just 24 hours, Bitcoin fell more than 8%, hitting a severe low of $84,722, according to CoinGlass data. This caused $864 million in long-position liquidations and nearly $75 million in short liquidations, impacting over 260,000 trading accounts globally. The largest liquidation hit came from Hyperliquid with a massive $15.6M BTC-USD position being wiped out.latest Bitcoin price crash news

This downturn marks another blow to Bitcoin, which now trades over 30% below its October 2025 peak of $126,000. Many traders are questioning whether this is simply a temporary reset or the early stage of a deeper Bitcoin bear market in December 2025.

Real-time crypto liquidations data

Bitcoin market analysis and updates

Global Crypto Market Cap Trends

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Crypto Stocks Collapse as Bitcoin Falls: MicroStrategy and Miners Lead the Red Wave

As the Bitcoin price dropped below $84,000, the shockwaves spread throughout traditional equity markets—especially crypto-related stocks.

The biggest hit came from MicroStrategy (now Strategy), which holds over 650,000 Bitcoins. Its stock price collapsed more than 11% following news of:

• A $1.44 billion reserved fund for dividends

• A cut financial outlook for 2025

• A revised Bitcoin forecast from $150K down to $85K–$110K

Bitcoin miners like Marathon Digital and Riot Platforms shed over 7% each, while Coinbase Global tumbled more than 6%, reflecting broad investor panic.

Even Tom Lee-backed Bitmine Immersion Technologies fell 11%, despite ongoing ETH accumulation ahead of the Fusaka upgrade. These widespread declines illustrate how closely crypto stocks mirror Bitcoin price action, especially during major market corrections.

Year-to-date numbers paint an even grimmer picture:

• Bitcoin (BTC) is down 7.2% from its 2025 highs

• Ethereum (ETH) has dropped 22%

• Solana (SOL) is down 32%

• Dogecoin (DOGE) fell 26%

This trend signals fading optimism earlier fueled by possible crypto-friendly Trump administration policies.

BOJ Rate-Hike Signals Intensify December Crypto Crash

One of the strongest triggers behind the Bitcoin price crash in December 2025 was the sudden hawkish tone from the Bank of Japan (BOJ).

BOJ Governor Kazuo Ueda hinted at potential rate hikes during the December 18–19 meeting, stating the bank would evaluate the “pros and cons” of tightening monetary policy. This caused:

• Trader probability for a BOJ rate hike to surge from 58% to 76%

• Asia-Pacific markets to turn extremely bearish

• Crypto traders to panic-sell due to high leverage exposure

This pressure came on top of ongoing uncertainty around the U.S. Federal Reserve’s December 9–10 meeting, where markets expect an 83% chance of a 25 bps rate cut.

Low liquidity due to the December holiday season amplified losses, causing a rapid cascade of:

• Stop-loss triggers

• Massive long-position liquidations

• A wipeout of heavily leveraged positions

Volatility in major AI-linked stocks like Nvidia and Microsoft added to investor fears, accelerating the crypto downturn.

Why Bitcoin Crashed Below $84,000: Deep Analysis and What Comes Next

While the selloff seemed sudden, several deeper factors combined to create the perfect storm:

Thin holiday liquidity

December is historically one of the lowest liquidity periods in global markets.

Algorithmic trading resets

Monthly rebalancing pushed the market toward lower volatility zones.

Leveraged overexposure

Funding rates had been unusually high, meaning longs were overcrowded.

Macro pressure from BOJ and the Fed

Even slight rate signals create outsized moves in leveraged crypto markets.

Critical Levels to Watch: Will Bitcoin Recover or Drop Further?

Analysts now focus on several key Bitcoin support and resistance levels:

Major Support – $86,000

If Bitcoin stays above this zone, a recovery toward:

• $91,000

• $96,000

becomes possible.

If $86,000 breaks, next supports are:

• $85,000

• $83,000

A breakdown below these opens risk toward $66,800, especially if the current bear flag formation confirms.

Best-case scenario

Liquidations clear out leverage, and Bitcoin rebounds toward $93,000–$100,000 by mid-December.

Worst-case scenario

Given Strategy’s stock collapse and poor ETF inflows, Bitcoin could revisit $60,000 levels.

Historical Context: Worst November Since March

Bitcoin closed November with a brutal 17–21% monthly decline, breaking its typical bullish seasonal trend. The fall from:

• $111,000 (early November)
  to

• $86,600 (end of November)

marks one of the steepest monthly drops of 2025.

Ethereum mirrored this pattern with over 26% monthly losses, reflecting broader risk-off sentiment across crypto markets.

However, analysts still believe that if the key $86,000 support holds, Bitcoin could reattempt the $100,000 zone, especially with possible:

• Rate cuts

• Institutional inflows

• ETF-driven demand

Key Lessons for Crypto Traders During Bitcoin’s December 2025 Crash

1. Manage Leverage Carefully

More than $1 billion in liquidations shows how dangerous over-leveraging is during low-volume months.

2. Understand Macro Triggers

Bitcoin and crypto markets are now heavily influenced by:

• BOJ policy

• Federal Reserve decisions

• Global liquidity conditions

3. Track Key Price Levels

Currently important zones are:

• Support: $86K / $83K / $85K

• Resistance: $91K / $96K

4. Diversify Across Sectors

Altcoins suffered even harder than Bitcoin, proving the need for mixed portfolios.

5. Keep Long-Term Perspective

Despite short-term panic, analysts still expect Bitcoin price prediction 2025 targets above $100K, depending on ETF flows and macro conditions.