Bitcoin is below $80,000, marking its lowest point since November 2024.
The ongoing sale erases almost all profits recorded after Donald Trump’s election victory, indicating a period of intense volatility.
A trillion dollar loss
Cryptoslate data shows that Bitcoin has fallen by more than 8% in the last 24 hours, recovering to $79,200 after a brief touch on $78,790.
Over the past week, major digital assets have lost 20%, dropping from over $100,000 to current levels.
This performance has brought Bitcoin Price back to the level it was last seen after winning the Trump election in November 2024.
On the other hand, decline is not limited to Bitcoin. Major altcoins are also suffering sharp losses.
Ethereum plunged nearly 50% from its post-election peak in late 2024, with BNB, Solana, XRP, Dogecoin and Cardano up to 10% over the past 24 hours.
As a result, unrealized losses across the market have exceeded $1 trillion in the past month, reflecting growing investor anxiety.
This volatility caused widespread liquidation. Coinglass data reveals that leveraged positions of over $918 million have been wiped out, affecting more than 225,000 traders.
Most of these losses have been hit by long traders betting on price increases, with $810 million being liquidated. Hoping for a further decline, short traders have been wiped out $108 million.
However, despite this Bloodbath, Crypto enthusiasts argue that these modifications are typical of the market.
Marc Van Der Chijs, co-founder of Bitcoin Miner Hut8, wrote to X:
“The market is very nervous, but we’re zooming out and we can see that nothing has changed. The 30% drop occurs several times per bloom market, usually followed by a massive price explosion.”
Why does the market crash?
Market analysts believe the ongoing recession is attributed to a combination of factors such as uncertainty about Donald Trump’s tariff policy, weakening investor confidence, and a substantial $3 billion outflow from Bitcoin spot ETFs.
According to Kobeissi’s letter, fears about the trade war had a major impact on risk assets, sweeping $800 billion from the Crypto Market since January 20th.
The company noted that liquidity often shifts towards the US dollar during such trade wars. This is recognized as a more stable asset during economic uncertainty. The crypto market is now 10 times larger than previous trade disputes.,amplification Price fluctuations.
Kobeissi’s letter explained:
“Recognition of loss of stability during the trade war worries retailers. As a result, we see large daily outflows as ‘sflocks’ move together. This is why BTC drops over $5,000 in just a few minutes. ”
Furthermore, investors’ feelings remain weak, with the code’s fear and greedy index plunging to 21, heading towards “extreme fear” levels.
This is the weakest reading since the 2022 Bear Market. This was caused by the collapse of several crypto companies, including FTX, Celsius, Voyager and more.
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