Bitcoin Plunges Below $79,000 as Market Sentiment Worsens

Bitcoin has taken a sudden and significant hit, dropping from $83,000 to below $79,000 within a matter of hours.

Currently priced at $78,830, the world’s largest cryptocurrency has fallen by nearly 4.85% on the day, marking a sharp downturn as global markets brace for Wall Street’s opening.

This decline comes as risk aversion intensifies among investors, driven by shifts in market liquidity following last week’s U.S. tariff announcement. Despite initially showing resilience, Bitcoin is now reflecting broader market unease. In the past 24 hours alone, the crypto market saw $570 million in liquidations, with $493 million stemming from long positions.

Bitcoin itself accounted for over $121 million of these liquidations, while Ethereum followed closely with $108.6 million, according to data from CoinGlass.

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Ethereum Hits Lowest Point Since October 2023

Ethereum has been hit even harder, falling to its lowest value since October 2023. The cryptocurrency is now down 65% from its peak, fueling further uncertainty among investors.

Economist and crypto skeptic Peter Schiff weighed in on the situation, noting that the delayed reaction from digital assets has finally materialized. He remarked that Bitcoin hitting a weekly low of $81,000 could spell trouble for those heavily invested in Bitcoin ETFs, warning that the day ahead might be particularly challenging for such investors.

Altcoins Also Under Pressure

Other major cryptocurrencies are not faring much better. Solana (SOL) has seen $28.3 million in liquidations, while XRP recorded $13.36 million and Dogecoin (DOGE) about $12.96 million. As the market sentiment remains fragile, investors are bracing for further volatility, with many reassessing their positions amid the ongoing downturn.

Alexander Stefanov