Bitcoin Price Falls Below $80,000: Why Crypto Markets Are Crashing

Bitcoin Sells Off Hard

Bitcoin (BTC) has fallen below $80,000, sparking fears of a deeper sell-off and heightened uncertainty across the entire cryptocurrency market. The decline has dragged the total digital asset market capitalization down by 8.58%.

On Friday morning during Asian trading hours, Bitcoin lost support at $83,000 and slid nearly 7% to around $79,000 - its lowest level since November 2024. Trading volume surged to over $71.5 billion in 24 hours, resulting in the liquidation of nearly $410 million in leveraged Bitcoin long positions.

BTC has fallen 25% from its all-time high of $109,114 on January 20, the day US President Donald Trump took office. The Fear and Greed Index, which measures investor sentiment, is deep in the “Extreme Fear” zone, at just 16/100, down from 72/100 a month ago.

Why Did Bitcoin Fall So Much?

Stock Market Weakness

- US stocks fell on fears of a recession, weak corporate earnings and geopolitical tensions.

- New US tariffs add to uncertainty.

Hedge Funds Sell Bitcoin ETFs

A 10X Research analysis shows that more than 50% of Bitcoin ETF inflows come from hedge funds, and they are actively reducing their exposure.

- Top hedge funds hold around $10 billion in Bitcoin ETFs, and are selling them en masse.

Bitcoin Boss Where to Go Next?

- Options Market: Bitcoin options at $70,000 are seeing high open interest, indicating investors are concerned about further BTC price declines.

- Increased Volatility: $4.9 billion in options contracts are set to expire on February 28, which could have a short-term impact on Bitcoin price.

Conclusion

Bitcoin prices are facing selling pressure from hedge funds, weak stocks, and panicked investor sentiment. The coming days will determine the next trend: Will Bitcoin recover or continue to plummet?