Bitcoin (BTC) market sees major pullback, dropping below $80,00 for the first time since November 2024.

This marks a major decline, erasing nearly all the gains Bitcoin made after Pro-crypto President Donald Trump took office.

The cryptocurrency market is seeing a major pullback today, with Bitcoin falling below the $80,000 level for the first time since November. This marks a significant decline, erasing nearly all the gains Bitcoin made after Pro-crypto President Donald Trump took office.

Bitcoin price today: BTC drops below $80K, erasing Trump bull market gains

World's largest cryptocurrency, Bitcoin (BTC), has dropped below the $80,000 mark, marking a major pullback in the crypto market.

What Happened: Several pieces of negative news have impacted the market, including the Bybit hack, which sent shockwaves through the crypto community.

Additionally, broader market uncertainty, including geopolitical tensions and trade issues like the Trump administration’s reintroduction of tariffs on Canada and Mexico, have contributed to the market’s instability.

As the market faces instability, analysts are examining key indicators to gauge market sentiment and potential for a rebound.

Chief Investment Officer at Bitwise Asset Management Matt Hougan discussed the current state of the Bitcoin market and spoke about the ongoing volatility.

In an interview with Scott Melker, Hougan recalled past moments of panic, such as the dramatic drop in Bitcoin’s price in July when it fell from $72,000 to around $55,000. Despite widespread fears at the time, Bitcoin’s price didn’t crash further but instead surged to $100,000.

"There was a moment in July when people were losing their minds, and Bitcoin dropped to $55,000 after going down from $72,000 quickly," Hougan said. "Everyone was panicking, thinking it would go to zero. But it bounced back to $100,000."

Thoughts On Fear And Greed Index, Options Expiration

Now, there’s a similar sense of fear in the market, with concerns about the broader economy, and major stocks are also facing challenges.

However, Hougan suggested that if earnings reports from major stocks come in better than expected, it could signal that Bitcoin’s market is bottoming out.

The Fear and Greed Index, another tool for gauging market sentiment, currently sits at 21, indicating extreme fear. This level mirrors the lows seen last September and August, potentially signaling that the market is due for a rebound.

With options expiration approaching, he speculated that the market could see positive momentum, especially by next week.

"We’re at 21 on the Fear and Greed Index, which is the lower bound of where we saw it last September and August. So, we could be setting up for some interesting market moves as we approach options expiration next week," Hougan added.

Despite the short-term fears, Hougan said that the long-term outlook for Bitcoin remains strong. Institutions continue to buy, and influential figures like Michael Saylor are still investing in Bitcoin.

Governments are also increasingly looking at Bitcoin as a serious asset. The short-term news may be negative, but the fundamentals of Bitcoin remain unchanged, Hougan concluded.