New York : Bitcoin faced one of its sharpest intraday declines of the year on Saturday, plunging $3,500 in under an hour and wiping out more than $155 million in leveraged long positions, sparking renewed fears of manipulation by deep-pocketed market players.
The sudden fall—from $98,000 to $94,500—came shortly after a brief post-rally surge fueled by lower-than-expected U.S. PCE inflation data. Yet analysts noted the crash occurred without any major regulatory announcement or macroeconomic trigger, leading to speculation that large institutional actors orchestrated the drop to flush out leveraged traders.
According to Chainalysis, whale wallets holding 1,000+ BTC executed “coordinated sell-offs,” a weekly pattern seen in the derivatives market to liquidate both long and short positions. Approximately 70% of all liquidations occurred on Binance, where trading volumes spiked within minutes.
The dramatic move prompted the SEC, under Chair Gary Gensler, to launch a preliminary investigation into potential spoofing and market manipulation. Despite President Donald Trump’s vocal pro-crypto stance—including his push for a national Bitcoin strategic reserve—the administration’s supportive posture offered little relief to rattled investors.
The fallout rippled across the broader crypto market.
Bitcoin’s volatility index jumped 15%.
Ethereum dropped 8%.
Mid-cap altcoins suffered double-digit intraday losses.
Retail sentiment turned sharply negative, with frustrated traders flooding X (formerly Twitter). The hashtag #CryptoCrash amassed over 300,000 views, with users calling the markets “rigged” and demanding stronger oversight.
Despite the chaos, Bitcoin saw a partial rebound to $95,800 by evening. Still, analysts warn of additional downside risk if revised inflation data signals a more hawkish Federal Reserve stance.
Globally, the shock was felt strongly in emerging markets like India, where crypto adoption has surged past 20 million users. Experts argue the episode underscores growing concerns over institutional dominance in what was once envisioned as a decentralized financial system.
