Recent price drops for Bitcoin have sent shockwaves through the crypto market. The cryptocurrency’s value has declined from around $126,000 to $95,000 in just six weeks. This decline, driven primarily by panic selling from short-term holders triggered a liquidity crisis that impacted the entire industry. While long-term holders took advantage of profit opportunities, short-term holders sold off their holdings at a feverish pace as prices dipped below $100,000. 148,241 BTC were liquidated in the process, exacerbating market volatility and forcing many investors to exit positions. The sell-off has resulted in over $1.3 billion in liquidations, significantly impacting investor confidence and causing reduced liquidity within the market. Despite these losses, stablecoins and AI-related assets have attracted capital seeking havens from the volatile crypto market.