Why Did Bitcoin Crash? Buyer Disappearances Trigger Sharp Price Drop

Bitcoin’s price remained within a tight range, ending August with a close above $90,000, fueling hopes for a bullish year-end. However, the BTC price abruptly plunged below $86,000, triggering widespread market volatility. The global crypto market cap declined significantly, shedding nearly $140 billion in value, as ETF accumulation remained minimal despite the discounted prices. While liquidation and high volatility are cited as primary factors behind this collapse, analysts suggest a significant liquidity vacuum was created by vanishing buyer demand.