Bitcoin has plunged below $ 80,000, marking its lowest point since November 2024, because the wider cryptography market has experienced a significant slowdown.
The current sale has erased almost all the gains recorded after Donald Trump’s electoral victory, reporting an intense volatility period.
Loss of $ 1 billion
Data from Cryptoslate Witches that Bitcoin has dropped by more than 8% in the last 24 hours, briefly affecting $ 78,790 before recovering at $ 79,200.
During last week, the first digital asset lost 20%, from more than $ 100,000 at current levels.
With this performance, Bitcoin Price has now returned to levels given for the last time after Trump’s electoral victory in November 2024.
Meanwhile, the drop is not limited to Bitcoin. The leading altcoins have also undergone strong losses.
Ethereum plunged almost 50% of its post-electoral peak at the end of 2024, while BNB, Solana, XRP, Dogecoin and Cardano have lost up to 10% in the last 24 hours.
Consequently, losses not made on a market scale exceeded 1 billion of dollars last month, reflecting the growing discomfort of investors.
This volatility has triggered widespread liquidations. Coinglass data reveal that more than $ 918 million in leverage has been destroyed, which has an impact on more than 225,000 merchants.
Most of these losses have struck long traders in Paris on price increases, with 810 million dollars liquidated. Being expecting a new drop, short traders have also seen $ 108 million deleted.
However, despite this bloodbath, crypto lovers argued that these corrections are typical for the market.
Marc van der Chijs, the co-founder of Bitcoin Miner Hut8, wrote on X:
“The markets are extremely nervous, but zoom out and you will see that nothing has changed. 30% of the decreases occur several times each bull market, normally followed by a huge price explosion. »»
Why does the market block?
Market analysts attribute the current slowdown to a combination of factors, including uncertainty about Donald Trump’s pricing policies, the confidence of weakened investors and a substantial exit of $ 3 billion from Bitcoin Spot ETF.
According to Kobeissi’s letter, fears of a trade war have had a significant impact on risk assets, destroying $ 800 billion on the cryptography market since January 20.
The company noted that during these periods of trade war, liquidity often moves to the US dollar, which is perceived as a more stable asset during economic uncertainty. He added that the cryptography market is now ten times larger than previous commercial conflictsamplification Price fluctuations.
Kobeissi’s letter explained:
“The perceived loss of stability during commercial wars is concerned about retail. Consequently, we see massive daily outings while the “herd” moves together … This is why BTC can fall from $ 5,000 + in a few minutes. »»
In addition, the feeling of investors remains low, the Crypto Fear & Greed index fell to 21 and pushing towards levels of “extreme fear”.
This is its lowest reading from the 2022 bear market, which has been triggered by the collapse of several cryptographic companies, including FTX, Celsius, Voyager and others.
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