Bitcoin crashes 45% from 2025 peak as trading volumes collapse
Bitcoin's price has faced sharp declines in early 2026, dropping over 45% from its October 2025 peak. The cryptocurrency now tests key support levels as trading volumes shrink and market conditions shift. Analysts point to broader economic factors and changes in mining operations as major influences on the current volatility. Bitcoin's market value has fallen steeply since late 2025. After hitting an all-time high of around $126,000 in October 2025—pushing the total market cap to roughly $2.5 trillion—it declined for five straight months. By late March 2026, the market cap sat between $1.33 trillion and $1.40 trillion, with prices dipping as low as $60,000 in February before recovering slightly to about $73,800.
The drop came alongside major shifts in trading activity. On March 27, Bitcoin futures contracts worth $13.45 billion expired, causing open interest to plummet by 42%. Spot Bitcoin ETFs also saw net outflows of nearly $296 million in the week ending March 28, breaking a four-week streak of inflows. Goldman Sachs highlighted persistently low trading volumes, warning that this could lead to further short-term price swings.
Mining operations have also faced pressure. The network's hashrate dropped from a peak of 1,160 EH/s to around 1,020 EH/s as some miners shifted focus to AI and high-performance computing. With average production costs nearing $80,000 per Bitcoin and hash prices at multi-year lows, profitability has become tighter. Meanwhile, Bitcoin is testing a critical support zone between $65,500 and $66,000, with risks of falling toward $60,000–$62,000 if it breaks below this range.
Despite the downturn, some analysts see signs of stabilisation. Key factors include the end of long-term holder sales, negative funding rates suggesting local price bottoms, and $700 million in Bitcoin ETF inflows. Easing geopolitical tensions—such as reduced US-Iran friction—and expectations of three US Federal Reserve rate cuts in 2026 have also improved market sentiment. Goldman Sachs maintains buy ratings on crypto-adjacent stocks like Coinbase and Robinhood, viewing Bitcoin's recent decline as part of a typical cyclical pattern.
GameStop, meanwhile, continues to hold 4,710 BTC, valued at roughly $368 million. Nearly all of it—4,709 BTC—is pledged as collateral for an options strategy through Coinbase Credit. Bitcoin's price remains under pressure, with technical levels and mining economics shaping its near-term outlook. While risks of further declines persist, improved regulatory clarity and macroeconomic conditions could support a gradual recovery. The cryptocurrency's performance in the coming months will likely depend on trading volumes, institutional flows, and broader financial trends.
