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BTC Crash to $65K: Analysts Explain Emotional Selling Behind Drop

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TLDR

  • Bitcoin has dropped to $65,000, erasing all gains since Donald Trump’s reelection in 2024.
  • The cryptocurrency has lost nearly $25,000 since last Wednesday and is now almost 50% off its all-time high.
  • Analysts suggest that the recent BTC crash is primarily driven by emotional selling and market sentiment.
  • Experts from the Kobeissi Letter attribute the crash to fear and uncertainty, with no fundamental changes in Bitcoin’s ecosystem.
  • Doctor Profit believes Bitcoin could hit a bottom between $57,000 and $60,000, presenting a potential buying opportunity.

Bitcoin has just dropped to $65,000, erasing all gains since Donald Trump’s reelection in 2024. The cryptocurrency has lost nearly $25,000 since last Wednesday. This drop marks almost a 50% decline from its all-time high in October 2025. Analysts are now speculating about the reasons behind the crash and where the bottom could be.

BTC Crash Driven by Emotional Selling

The recent BTC crash appears to be driven by emotional selling rather than any fundamental issues within the cryptocurrency ecosystem. Analysts from the Kobeissi Letter highlighted that market sentiment has been volatile. According to them, riskier assets like Bitcoin often experience large price swings due to shifts in investor sentiment.

The current bearish trend has seen a mass exodus of investors, although it doesn’t seem linked to any major changes in Bitcoin’s underlying fundamentals. The experts suggest that fear and uncertainty have been driving the market, leading many to sell without any clear reason tied to the market’s core fundamentals. As a result, BTC has struggled to maintain its value.

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BTC May Bottom at $57,000–$60,000

Doctor Profit, a well-known analyst with a bearish outlook, has been predicting a Bitcoin crash for months. He believes that Bitcoin is nearing its bottom, which he places at around $57,000–$60,000. “I consider $57k to $60k as a great entry to make money for the short term and gain some serious % before we continue going down,” Doctor Profit stated.

Doctor Profit has set up “big buy” orders in that range, indicating that he believes Bitcoin will stabilize and possibly recover from that level. He plans to hold for a few months and is not looking to buy Bitcoin at higher prices than that. His outlook suggests a brief short-term recovery before the next decline.

Altcoins Struggling, XRP Takes the Biggest Hit

As Bitcoin falls, altcoins are also experiencing substantial losses. XRP, in particular, has faced a major drop, falling by nearly 20% in just 24 hours. It now struggles to maintain a price above $1.25, marking a troubling trend for the token. Other altcoins are also facing pressure, but XRP’s performance has been the poorest during this downturn.

The altcoin market is taking a heavy hit, with many tokens following Bitcoin’s downward trajectory. Investors are growing increasingly cautious, and the entire market seems to be undergoing a correction. This has resulted in significant losses for many, with XRP leading the decline.

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Crypto World

Lido DAO Mulls $20M LDO Buyback to Boost Token Price

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Lido DAO Mulls $20M LDO Buyback to Boost Token Price

Lido’s decentralized autonomous organization is considering a one-off $20 million buyback of its governance token to address so-called price dislocation, which is at “historically depressed levels” relative to Ether, according to the DAO. 

The proposal, submitted Friday, seeks permission to swap 10,000 Lido Staked Ether (stETH) tokens, currently worth $20 million from the DAO’s treasury for Lido DAO (LDO), arguing that LDO is undervalued.

“This is not a routine fluctuation. It represents one of the most significant dislocations between LDO’s market price and its underlying protocol fundamentals in the token’s history.”

A token buyback of this size could boost the price of the token, which has fallen roughly 96% from its all-time high. In November, a Lido DAO member pitched an automated buyback mechanism for LDO to improve the token’s price. However, that proposal hasn’t been implemented.

LDO’s change in price relative to ETH since 2024. Source: Lido DAO

Lido DAO pointed out that LDO is trading at a steep discount to Ether (ETH) at a ratio of 0.00016, roughly 63% below its two-year median.

This is despite the protocol holding the top spot of the Ethereum liquid staking market, with a 23.2% share of staked Ether, according to Dune Analytics data. The protocol’s dominance has even been flagged as a centralization risk to the network in previous years.

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Share of Ethereum network validators. Source: Dune Analytics

Related: Ethereum builders propose ‘economic zone’ to tackle L2 fragmentation 

LDO is currently trading at $0.30, down 95.9% from its $7.30 high set in August 2021, according to CoinGecko data. LDO’s $255 million market cap makes it the 141st largest token by value at the time of writing.

“That dislocation is not justified by a proportional deterioration in protocol performance,” Lido DAO said. 

Lido DAO proposes buying stETH in batches

Lido DAO proposed buying up to 10,000 stETH in smaller batches of 1,000 to buy LDO. 

Lido DAO said it would use limit orders or adopt a dollar-cost averaging strategy to avoid market volatility. 

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