The crypto market suffered a major shock when Bitcoin, the world’s largest cryptocurrency, suddenly fell approximately $81,000dragging down the entire market and wiping out $2 billion in value.
Now, investors are concerned about where BTC is headed, with many analysts saying the most important level to watch is $74,000.
Strong US job figures are dashing hopes for an interest rate cut
One of the biggest reasons behind Bitcoin’s recent price crash is the latest report from the US Labor Department. With September’s non-farm payroll numbers much stronger than expected, 119,000 new jobs were added, while experts forecast only 50,000.
At the same time, unemployment rose slightly to 4.4% and applications for unemployment benefits fell to 220,000. This stronger-than-expected employment picture has dampened hopes for a Federal Reserve rate cut in December.
Meanwhile, the CME FedWatch tool now shows a 67% chance of no interest rate change, compared to last week when traders expected a high chance of a rate cut.
Tom Lee points to a “mechanical failure” behind the fall
Adding an additional layer to the story, Bitmine Chairman Tom Lee suggested that an ADL (Auto-Deleveraging Liquidation) error may have played a major role in this recent price crash.
He compared it to an automated margin call that may have accelerated the decline, while also noting that market pressure from major players could push prices down.
Since the spot Bitcoin ETFs have also seen large outflows, a total of $903 million. Leading the withdrawals was BlackRock’s IBIT with $355.5 million, followed by Grayscale with $199.4 million and Fidelity with $190.4 million.
$2 billion in liquidations wiped out
The sudden price has led to massive liquidations in the market. In the last 24 hours alone, the crypto market cleared $2 billion in leverage positions. More than 406,089 traders were liquidated.
One of the largest liquidation orders. worth $36.78 million took place on Hyperliquid’s BTC-USD pair.
Crypto Fear & Greed Index has dropped to 6
The market panic is getting worse as the Crypto Fear & Greed Index has fallen to just 6, indicating extreme fear among investors. This level shows that many traders are now selling out of fear rather than logic.
As a result, Bitcoin has now wiped out all of its gains for the year, falling 11% so far in 2025.
$74,000 crucial level to watch
Previously, Coinpedia News reported that Bitcoin had two major support levels to watch. Initial support was around $87,000, but that level has already been breached in this recent crash.
As a result, everyone is now focused on the second major support at $74,000, a level that many experts call the ‘panic zone’.
If Bitcoin falls back to $74,000, analysts warn it could cause even more fear and lead to a bigger market sell-off.
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