Here’s Why Bitcoin Crashed Fell Below $87,000, According to Expert

Yesterday Bitcoin plunged below $87,000, marking its lowest value since November, as investors retreat from riskier assets.

The downturn has impacted the broader crypto market, with Ethereum, XRP, and Solana also facing steep declines.

Analysts attribute Bitcoin’s drop to its strong correlation with tech stocks. Rebecca Patterson, a former chief investment strategist at Bridgewater Associates, explained that cryptocurrencies often mirror movements in the tech sector. She suggested that Bitcoin could see further losses if Nvidia’s upcoming earnings report fails to meet expectations.

Despite former President Donald Trump’s vocal support for crypto and expectations of a more favorable regulatory stance, the market remains under pressure. Patterson believes that greater regulatory clarity in the coming months could encourage integration between crypto and traditional finance, potentially reducing volatility.

READ MORE:

Another Company Commits $1 Billion to Bitcoin for Crypto Payments Expansion

Regulators have also been scrutinizing stablecoins, particularly those backed by U.S. Treasuries, like Tether. Patterson pointed out that Tether’s massive Treasury holdings—over $113 billion—position it as a key player in financial markets.

Security risks continue to cast a shadow over the industry. The recent $1.5 billion Bybit hack highlights vulnerabilities, and Patterson warned that a similar incident in the U.S. could trigger wider financial instability.

With Bitcoin’s decline ongoing, investors are bracing for further losses. Analysts suggest that worsening tech market conditions, regulatory actions, or geopolitical tensions could accelerate the sell-off, forcing crypto investors to liquidate their holdings.

Alexander Zdravkov