Bitcoin Price Slips Under $80K In Crypto Market Crash, Altcoins Drop More

Bitcoin price has extended its weekly losses to more than 18% after falling under $80,000 earlier today amid the broader crypto market crash. Macro uncertainties and fears of Trump trade wars have pushed global markets lower this week. Leading altcoins such as Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) each dropped by 8% while extending its weekly losses to 20-25%.

Crypto Market Crash Erases $900 Billion

Ever since US President Donald Trump kickstarted the trade war on January 20, the crypto market crash led to erasing more than $900 billion in just over a month’s time. Since the Trump inauguration, the total crypto market cap has dropped from $3.7 trillion to $2.8 trillion. On the monthly chart, Bitcoin price is down more than 21% after facing rejection at $106K levels.

BTC losses have further exacerbated after the asset lost the crucial support of $95K. Below is the chart of how Bitcoin has behaved after Trump announces trade wars with Mexico, Canada, and recently Europe.

Gold Takes the Limelight Over Bitcoin

The recent development shows that BTC has been subject to market uncertainties and has behaved exactly opposite to the yellow metal gold, which has been trending higher. Throughout the trade war, the price of gold continued to inch higher, extending its year-to-date gains to nearly 10%.

Gold has reclaimed its position as a favored global hedge amid uncertainty. Last week, Gold ETFs purchased an impressive 52 tonnes of the metal, marking the highest weekly inflow since July 2020. Over the past 12 months, gold prices have surged by more than 50%, recently achieving their best annual performance in over a decade.

How Low Can Bitcoin Price Fall?

Crypto analyst Justin Bennett suggests that Bitcoin may be on track to close the $77,360 CME gap from November, potentially aligning with the September 2023 trendline. In a recent post, Bennett expressed skepticism about Bitcoin’s ability to maintain its current levels.

“For Bitcoin to avoid a bearish outlook, it would need a miraculous February close above $92,000,” Bennett stated. However, he added, “The odds aren’t looking good.”

BitMEX CEO Arthur Hayes stated: “We are making lower lows in this current wave. I was tempted to add risk this morning, but looking at this price action I think we have one more violent wave down below $80k, most likely over the weekend, then crickets for a while”.

On the other hand, CryptoQuant CEO still believes that the Bitcoin bull run hasn’t ended, and it is very unlikely that the Bitcoin price will fall under $77,000, in this crypto market crash.

Ethereum (ETH) Leads Altcoins Crash to $2,100

Ethereum has been leading altcoins market crash, dropping an additional 8% today and moving all the way to $2,100. With today’s drop, ETH has completely erased its post-election rally. Ethereum has declined by nearly 50% from its peak following the late-2024 election. As of press time, ETH price is trading 7.74% down at $2,136, losing $30 billion in the last 24 hours.

Apart from ETH, some of the other top altcoins have also lost anywhere between 8-10%. XRP price has crashed 8% today, moving all the way to $2.0. Solana (SOL) also dropped by 8% to $126 levels, with dogecoin (DOGE), Cardano (ADA) seeing correction of a similar magnitude losing crucial support levels.

In today’s crypto market crash, the overall crypto market liquidation has soared to more than $860 million as per Coinglass data. Of the total liquidations, $707 million has been in long liquidations alone.

Crypto Market Faces Major Liquidity Crisis

Tight liquidity conditions in the market have been the key reason behind the steep fall in the crypto market recently. Of the total monthly market correction, $760 billion have been eroded just within the last 60 hours, noted The Kobeissi Letter, in the absence of liquidity.

Much of the global liquidity is finding its way back into the US Dollar during ongoing trade tensions. Often seen as the “safest risky asset,” the USD benefits from its reputation as one of the world’s most stable currencies. Thus, the USD has been sucking out the liquidity from crypto and the rest og global markets.