Bitcoin price crash reason 2025: Bitcoin crashes from $126,000 to $95,000 — CryptoQuant reveals the real reason behind BTC USD slide

BTC price drop: According to a report, Bitcoin (BTC)’s sharp decline from $126,000 to $95,000 has sparked debate across the crypto community about what actually caused the decline. While some have suggested that long-term holders are cashing out, new data from CryptoQuant points to a very different reason; As Benzinga reported, this reason was mainly due to short-term panic and not experienced investor distribution.

Why Did Bitcoin Price Drop?

According to CryptoQuant, the sales were largely driven by capitulation by short-term holders (STH); According to the report, cryptocurrencies younger than three months dominated the volume spent during the steepest parts of the decline. According to the Benzinga report, these new investors repeatedly sold at a loss, triggering forced borrowing and liquidations as they aggressively exited.
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Why Weren’t Long-Term Holders Behind the BTC USD Selling?

Long-term holders (LTHs) have increased their selling since September, but analysts say this behavior appears to be normal mid-cycle profit-taking rather than the typical heavy distributions of major markets, according to the report. As Benzinga reported, it was noted that Cap continued to rise, signaling continued new inflows, but not enough to offset the increase in STH losses combined with steady LTH sales.

Bitcoin Breaking Below $100,000 Triggered Large-Scale Loss Selling

CryptoQuant pointed to November 14 as the most dramatic moment of the launch. According to the report, short-term holders with control over less than 1 million BTC panicked and sold 148,241 BTC at an average price of $96,853; which was well below the $102,000-$107,000 cost basis.

This was a non-profit event; It was a mass loss event triggered when Bitcoin fell below the psychological $100,000 level, turning the perceived support into a breakout point, according to the Benzinga report. ALSO READ: TGT shares fall today as Target cuts guidance and predicts weak holiday sales

Capitulation Signals a Potential Basis for Bitcoin’s Next Move

Faced with the first meaningful decline, many late-stage buyers opted to capitulate rather than ride out volatility, according to the report. According to the Benzinga report, historically such capitulations of STH have marked the transfer of cryptocurrencies from weaker hands to stronger ones and often form the basis for Bitcoin’s next big move.

FAQ

What Caused Bitcoin to Drop from $126,000 to $95,000?
According to the report, the decline was mainly driven by short-term holders.

Is this the end of Bitcoin’s bull cycle?
CryptoQuant suggests that this resembles a bull market correction, not a cycle-ending peak.