Bitcoin Plunges Below $80,000 Amid Broad Crypto Market Retreat
Bitcoin experienced a sharp decline during early Saturday afternoon trading in New York, falling below the critical $80,000 threshold to reach its lowest levels since April 2025. This significant drop occurred as part of a broader retreat across digital assets, highlighting ongoing volatility in the cryptocurrency sector.
Market Data Reveals Steep Losses Across Major Tokens
According to market data, Bitcoin fell as much as 7.1% to $78,159.41 at midday during New York trading hours on Saturday. Other major cryptocurrencies posted even steeper losses, with Ether, the second-largest digital asset, shedding more than 10%, and Solana falling over 11%. The selloff has been particularly severe, erasing more than 30% from Bitcoin's value in recent weeks.
Crypto Market Loses $111 Billion in 24 Hours
CoinGecko data indicates that the selloff knocked approximately $111 billion off the total value of the cryptocurrency market in the past 24 hours. Additionally, market tracker Coinglass reported that about $1.6 billion in short and long positions were liquidated during the same timeframe, with much of this activity occurring in the last four hours, primarily centered around Bitcoin and Ethereum.
Factors Contributing to the Decline
The retreat, which recalls levels seen after the "Liberation Day" fallout, adds to weeks of macro disappointment for Bitcoin. The cryptocurrency has failed to respond to several market developments that traditionally would have provided support. For instance:
- The dollar weakened for much of January as investors grew wary of policy risks from the Trump administration, yet this did little to boost sentiment in crypto markets.
- Bitcoin showed no meaningful response during gold's rally to record highs and did not attract inflows following sharp reversals in gold and silver prices on Friday.
- Delays in new US market-structure regulations for the crypto sector have further undermined appetite for digital assets.
Investor Sentiment and Market Dynamics
Louis Navellier at Navellier & Associates noted, "Silver and gold have become the vehicle for investors concerned about fiat currencies." This shift has raised fresh questions about Bitcoin's role in broader portfolios. Once promoted as both a momentum play and a hedge against monetary debasement, Bitcoin is now struggling to fulfill either function. Persistent spot ETF outflows, lack of demand triggered by geopolitical risks, and traditional safe-haven flows concentrated in metals and cash have all contributed to this dynamic.
Geopolitical Tensions and Market Outlook
Bitcoin's price may also be impacted by rising tensions between Israel and Iran. Iran's army chief renewed warnings that Tehran could strike Israel, coinciding with Donald Trump's threats of potential US military strikes against the Islamic Republic. These geopolitical uncertainties add another layer of complexity to market sentiment.
Needham analyst John Todaro commented, "The levels right now are reading in pretty extreme disinterest from retail investors," adding that trading volumes may remain depressed for "another quarter or two." This suggests that the current downturn could persist in the near term, as the market grapples with multiple headwinds and shifting investor priorities.
