Bitcoin's Freefall Below $67K Raises New Questions About Market Bottom

The “Trump pump” narrative has officially collapsed. Bitcoin has experienced a dramatic freefall over recent weeks, plummeting past $67,600 and erasing virtually all gains accumulated since Donald Trump’s election victory in late 2024. What makes this downturn particularly striking is its speed and magnitude: nearly $25,000 shaved off the price in barely a week, representing a roughly 46% decline from the all-time high of $126,080 set in October 2025. The market has shifted from months of post-election optimism to full-fledged panic selling in just days.

No Fundamental Catalyst Behind the Freefall

The paradox that’s confounding both analysts and traders alike: there’s nothing fundamentally broken. Bitcoin’s network continues operating flawlessly with no protocol failures, no regulatory black swan events, and no on-chain issues to justify the magnitude of selling pressure. The blockchain infrastructure remains stable and secure. This disconnect between network health and price action points to one primary driver—pure market sentiment.

Fear-Driven Cascade Dominates Trading

According to research from the Kobeissi Letter, the current selloff is entirely emotional in nature. When sentiment turns negative on risk assets, rational analysis takes a backseat. Traders abandon conviction and follow the herd, hitting sell buttons simply because others are capitulating. This fear-driven cascade becomes self-reinforcing: panic begets more panic, and investors flee for safety without bothering to assess underlying fundamentals. The market is caught in a classic capitulation spiral.

Identifying the Potential Floor Zone

Not all market participants are capitulating, however. Some experienced traders view this freefall as a buying opportunity rather than a reason to sell. Notable analysts like Doctor Profit, who has built credibility through bearish calls and correctly warned of this downturn months in advance, have begun positioning for recovery. Their strategy involves placing buy orders in the $57,000-$60,000 range—the zone where they expect selling pressure to finally exhaust itself. The plan is straightforward: accumulate at those levels, hold for two to three months, and wait for the eventual recovery bounce.

Altcoins Face Steeper Declines

The freefall isn’t uniform across the crypto market. XRP has experienced particular weakness, currently trading around $1.39 with a 24-hour decline exceeding -3.46%—significantly outpacing Bitcoin’s -1.05% daily drop. This performance gap suggests that altcoins are bearing the brunt of broader deleveraging across the market, indicating risk-off positioning among investors.

The Critical Question: Will Support Hold?

The immediate market focus centers not on why Bitcoin experienced this freefall—the emotional dynamics are clear—but rather on whether the $57,000-$60,000 support zone will hold. If that level breaks decisively, the selling pressure could accelerate further as stop-losses trigger and risk management rules force liquidations. Conversely, if support proves genuine at that level, the two-to-three-month recovery scenario outlined by contrarian traders becomes more plausible. Until that inflection point arrives, volatility will likely remain elevated and sentiment deeply cautious.