Just days after what many headlines dubbed the “Crypto Bloodbath of 2025,” Bitcoin appears to be clawing its way back, now hovering around $112,000 to $114,000, up slightly from its weekend low of $104,782. While those numbers are jaw-dropping in historical terms, what do they really mean in the context of the recent crash, and how bad was it, really?

According to MarketWatch, Bitcoin had briefly dipped to $106,770 on the weekend, but has since rebounded above $114,000, a recovery that signals investor resilience despite widespread fear, uncertainty, and doubt (FUD) across the space.

Yet the drop, from over $120,000 last month, still triggered what data aggregator Coinglass reported as “the largest single-day liquidation in crypto derivatives history,” wiping out more than $3.6 billion worth of long positions in just 24 hours. Ethereum, Solana, and other altcoins followed Bitcoin’s lead, shedding between 12% to 18% in value before stabilizing slightly.

The immediate trigger, according to multiple analysts, was a cascade of forced liquidations on highly leveraged bets, compounded by thin weekend liquidity and rising Treasury yields that spooked risk markets globally.

“It was a leverage unwind in its purest form,” said Felix Liu, head of markets research at AsiaQuant, in an interview with Reuters. “But what makes this different is how quickly it bounced. This isn’t 2022.”

Indeed, in the broader scheme, the crypto crash looks less like a systemic meltdown and more like a violent reset. Compared to the infamous Terra-LUNA crash or the FTX collapse of 2022, no major exchange or stablecoin was at the epicenter this time. Instead, the market appears to be processing the pain internally; a sign of maturity, some say.

Still, not everyone is convinced. Retail investors took the brunt of the drawdown. According to analytics firm Glassnode, wallet activity dropped by 14% within 48 hours, and social sentiment on crypto platforms plunged into “extreme fear” territory. Rumors of institutional sell-offs and Asia-based whales shifting assets added fuel to the fire. Not to mention, how bad crypto investors are taking this almost unprecedented and very abrupt hit; with reports of some known traders even arriving to extreme measures, even to the extent of taking their own life.

Policy implications remain unclear. Philippine regulators have not yet issued formal guidance post-crash, but Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona hinted last week at the need for tighter oversight of derivatives and leverage in crypto markets. Meanwhile, calls are growing among local fintech groups for clearer guardrails around token listing, consumer protection, and exchange licensing.

In the aftermath, crypto has once again proven its dual nature: part rollercoaster, part stress-test for the future of decentralized finance. Whether the worst is over remains to be seen, but one thing is certain, volatility is still the name of the game.

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