Bitcoin (Bitcoin) The flash crash on June 25, 2026 wiped $48 billion off its valuation in about 25 minutes.
Bitcoin’s flash crash began at around 3:30 p.m. on Thursday, when the major currency’s market capitalization stood at about $1.225 trillion and average 24-hour trading volume of about $44.14 billion, according to Data from CoinMarketCap. As of 3:55 p.m., BTC’s market cap has fallen to $1.177 trillion.
As such, Bitcoin’s price has fallen to a 2026 low of around $58,887 at press time. Bitcoin’s flash crash was driven by a decline in demand from US institutional investors amid a long squeeze, a situation in which falling prices force holders of long stocks to sell, accelerating the decline.
Notably, the Coinbase Bitcoin Premium Index, a metric that measures the percentage difference in price between BTC on Coinbase and the global average price, has remained mostly negative over the past two months, based on… Data from Queen Glass. Basically, negative values of this metric indicate weak US demand or selling pressure for Bitcoin.
Bitcoin’s flash crash was further exacerbated by the massive liquidation of long positions, fueling the long squeeze. Over the past 24 hours, more than $665 million was liquidated from the Bitcoin leveraged market, with more than $543 million coming from buy traders, according to Updates from Queen Glass.
What’s next after Bitcoin’s flash crash?
With Bitcoin’s price highly correlated with institutional capital flows in the United States, Peter Schiff, chief economist and global strategist at Europac, blamed the sell-off on Strategy Inc. (NASDAQ: MSTR).
“MSTR’s death spiral has pricked the Bitcoin bubble. MSTR is down another 8% this morning, down 84% from its high. STRC is down another 7%, bringing the total decline to 25% and taking the current yield to 15.3%, sending Bitcoin down to $58,000, down 54% from its high,” Schiff said. male.
With Bitcoin under significant pressure from investors opting for artificial intelligence Stockslike Feinbold He explainedThe collapse on Thursday may increase in the near future if this trend continues. However, if U.S. bitcoin exchange-traded funds (ETFs) resume accumulation, a potential rebound could follow.
