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Bitcoin has fallen to its lowest level since February, crashing through $90K on Monday and erasing its 2025 gains. Several other major cryptocurrencies mirrored bitcoin’s drop, resulting in a greater market sell-off.
Let’s break down why this tumble is happening and where we may end up.
So, why is bitcoin dropping?
Bitcoin’s price has been falling for a few weeks since its latest all-time high of just above $126,000 in early October.[1] As with many market swings, there’s more than one reason.
1. Broader sell-off of riskier assets
Growing sentiment that we’re in an AI bubble led to a tumble of top tech stocks earlier in the month, signaling a declining risk appetite among investors. When sentiment turns cautious like this, investors tend to shy away from other high-risk investments, like bitcoin and other cryptocurrencies.
Investors worry that Trump’s tariff plans could push inflation higher again and force the Federal Reserve to delay cutting interest rates. Higher rates make risky assets like bitcoin less appealing, so people are putting less money into Bitcoin ETFs right now.
3. Bitcoin’s liquidity
In investing, an asset’s liquidity represents how easy it is to trade that asset without triggering big price swings. Market depth is one way to measure an asset’s liquidity.
At its peak in October 2025, bitcoin’s market depth sat at $766 million. This week, that number shrunk to $535.2 million.[3]
This drop means there are fewer buy and sell orders in the market, so even smaller trades can push bitcoin’s price around more, adding to the recent volatility.
4. Short-term panic selling
While bitcoin has been declining over the last few weeks, there’s a specific reason why BTC continues to tumble — especially today and over the weekend.
In this latest dropoff, crypto experts point to short-term holders panic-selling their BTC once it fell below its $100K support level late last week.[4] This sell-off pushed BTC into another dip, this time tumbling below $90K.
How low will bitcoin go?
While it’s impossible to predict exactly how low bitcoin will go, analysts from Bitfinex, a long-running cryptocurrency exchange, have weighed in. They claim the pace of loss has begun to slow and a sustainable bottom may be nearing.[5]
In simple terms, this means short-term holders may be slowing, or even finishing with, their panic-selling. Long-term holders and those “buying the dip” could stabilize or even trigger a rebound in BTC’s worth.
Is bitcoin going to crash?
Again, no one really knows for sure. Crypto is the Wild Wild West of the financial world. Historically, whenever bitcoin has dropped, it has consistently bounced back and regained the ground it lost — and then some.
However, past behavior isn’t indicative of future events, and bitcoin’s run of less than 20 years is merely a blip compared to traditional stores of value, like gold. Many crypto projects have gone bust, and while bitcoin may be one of the most stable cryptocurrencies — other than actual stablecoins— there’s no guarantee it will hold its value, whether now or in the long run.
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CRYPTOCURRENCY AND OTHER DIGITAL ASSETS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE SoFi Crypto products and services are offered by SoFi Bank, N.A., a national bank regulated by the Office of the Comptroller of the Currency. Crypto Claw Offer valid from 4/3/26 through 6/30/26 for New SoFi Crypto Members Only. Rewards are randomly assigned in amounts of $5, $10, $25, $100, or $1000. Higher-value rewards are less likely; most recipients receive $5 in digital asset award. Odds vary based on eligible participants and reward allocation. See full terms and conditions.
Finder’s bitcoin predictions for 2025
Each quarter, Finder surveys a panel of crypto experts on their predictions for bitcoin’s price, including where it will be by the year’s end and through 2035.
In our most recent survey in late October, Finder’s panel projected that bitcoin will finish 2025 at an average price of $138,300.
The most optimistic experts expect BTC to climb to $188,000, while the most pessimistic foresee a drop to around $90,000 by year-end.
It’s important to note that these predictions were collected at the end of October, before the full extent of bitcoin’s latest drop.
No one knows for certain where bitcoin is headed next. However, general sentiment among crypto experts is that we’re nearing the bottom or have already reached it. If you’re interested in “buying the dip,” our top crypto exchanges might be a good place to start.
To top off your investment, now might be a good time to learn how to get some free bitcoin.
Holly Jennings is the deputy crypto editor and updates writer at Finder, working with writers across all niches to deliver quality content to readers. She’s edited hundreds of financial articles ranging from credit cards to investments. With empathy at heart, she especially enjoys content that breaks down complex financial situations into easy-to-understand information. Prior to her role at Finder, she collaborated with dozens of small businesses to maximize the reach and impact of their blog posts, website copy and other content. In her spare time, she is an award-winning author for Penguin Random House, writing about virtual reality worlds, magical girls and lasers that go pew-pew.
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