Panic gripped the cryptocurrency market as Bitcoin plummeted below $80,000 for the first time since November 2024. The king of crypto took a nasty 5% tumble in a single day, bottoming out at $79,666. Ouch. That’s roughly 25% down from its January all-time high of $109,114—technically placing Bitcoin in bear market territory. Not exactly the moon shot believers were hoping for.
Bitcoin’s moon mission abruptly canceled as prices crash 25% from January highs, crushing crypto dreams across the board.
The digital asset market is bleeding red across the board, with the total market cap shrinking by 8.58% to $2.62 trillion. Trading volume spiked to $71.5 billion as investors rushed for the exits. The cause? Take your pick. Trump’s trade policies have everyone on edge. Regulatory uncertainty looms large. A major hack in Ethereum didn’t exactly inspire confidence. And let’s not forget the tech sector slowdown and broader Wall Street sell-off. Perfect storm, anyone?
Market sentiment has completely flipped. The Crypto Fear and Greed Index now sits at a miserable 16—”Extreme Fear” territory. Just a month ago, it was flirting with “Extreme Greed” at 72. This dramatic shift in sentiment follows liquidations of leveraged positions reaching nearly $410 million. The decline follows Bitcoin’s mid-December peak when it traded above $105,000. Funny how quickly things change.
Options traders are positioning for a potential slide to $70,000, with $4.9 billion in contracts expiring February 28. That’ll be fun.
Institutional investors aren’t helping. Hedge funds, who apparently accounted for over half of Bitcoin ETF inflows, are now dumping their holdings. More than $1.1 billion fled spot Bitcoin ETFs on Tuesday alone. So much for diamond hands.
The technical picture isn’t pretty either. Bitcoin smashed through the $83,000 support level like it wasn’t even there. On-chain metrics show increasing supply on exchanges, while whale wallets are shrinking. Network activity is faltering. Moving averages trend downward across all timeframes, confirming we’re firmly in bearish territory.
Some analysts warn we could see pre-election price levels soon. Others, like ChatGPT, still predict $190,000 by year-end. Someone’s going to be very wrong.
The market needs a catalyst, and fast. Until then, the blood bath continues.
