Bitcoin Drops Below $80K, Another Bad Week for Markets?

Dear Reader,

It’s been a tough week for the financial markets, first the S&P 500 and Nasdaq reported declines, then gold dipped to a two week low, now for the first time in three months, Bitcoin has fallen below $80,000 losing 25%, from its all time high of $107,000.

The sell off triggered a wave of $1.48 billion in liquidations, wiping out billions in value across the crypto market. The pressure isn’t just on Bitcoin, XRP, Dogecoin, and Solana have all suffered major declines as well. With Bitcoin being the largest and most influential cryptocurrency, its drop has sent shockwaves through the entire sector.

Bitcoin’s Drop...A Chain Reaction?

Bitcoin’s plunge wasn’t just a normal price fluctuation, it was a sharp rejection of the $90,000 support level that many traders were betting on. The decline worsened by $760 million in liquidations, forcing leveraged traders to sell, and accelerating the downward move.

But Bitcoin wasn’t the only one hit hard:

• XRP sank below $2.00, a 9.6% drop in 24 hours.

• Dogecoin and Solana followed suit, deepening losses across the sector.

• The total crypto market has now lost over $1 trillion in value.

What Triggered the Crash?

The crypto downturn didn’t happen in isolation. Several key factors are driving the sell-off, including:

• Stock Market Weakness – Bitcoin has been closely correlated with equities, and with the S&P 500 and Dow struggling, crypto followed suit.

• Trump’s Trade War – Tariffs on Mexico and Canada are fueling inflation concerns, pressuring financial markets across the board.

• Rising Treasury Yields – Higher U.S. bond yields make riskier assets like crypto less attractive to investors.

• Security Breaches – The $1.5 billion Bybit hack has shaken investor confidence, especially in centralized exchanges.

• ETF Outflows – Institutional investors have been pulling money from Bitcoin ETFs, raising concerns about long-term demand.

Will Bitcoin Rebound or Keep Falling?

Some analysts see this as a temporary correction, while others warn of deeper declines ahead.

• Technical analysts suggest Bitcoin could test the $70,000-$75,000 range before finding strong support.

• If inflation data remains high, the Federal Reserve may delay rate cuts, keeping pressure on risk assets.

• Some experts remain bullish, believing buyers will step in at lower levels.

With stocks, bonds, gold, and now Bitcoin all struggling, the broader financial landscape is flashing warning signs. So Is this a momentary pullback before a rebound, or is it a deeper market reset?

We’ll keep you posted!

Stay ahead,
Street Fin Gazette