The crypto market just took another brutal hit. Bitcoin has tumbled below $80,000

The sell-off isn't just a crypto problem. U.S. equity markets also opened the week deep in the red, with the Nasdaq (NDX) and S&P 500 (SPX) posting sharp declines.

The crypto market took another brutal hit today, with Bitcoin (BTC-USD) tumbling below $80,000, and major altcoins like Solana (SOL-USD), Cardano (ADA-USD), and Avalanche (AVAX-USD) nursing losses of up to 10%.

Also read: Bitcoin price drops below $80,000 as liquidations hit $650M in 24 hours

Investors are scrambling for cover as macroeconomic fears, liquidation cascades, and fading optimism around Trump’s crypto policies put the entire market under pressure. The market is now desperate for a catalyst to stop the bleeding.

Stock market turmoil drags crypto down

The sell-off isn’t just a crypto problem. U.S. equity markets also opened the week deep in the red, with the Nasdaq (NDX) and S&P 500 (SPX) posting sharp declines. Strategy (MSTR) and Coinbase (COIN) tanked more than 10%, reflecting just how much investor sentiment has soured.

Trump’s recent comments about potential economic pain didn’t help. He warned of “a little disruption” as his administration pushes tariffs and budget cuts—words that sent traders into full risk-off mode.

Mass liquidations fuel the fire

With Bitcoin crashing through key support, leveraged traders took a massive hit. More than $650 million in crypto positions were liquidated in the past 24 hours, with Bitcoin and Ethereum (ETH-USD) leading the pain at $264 million and $114 million, respectively.

Long positions were obliterated, driving a self-reinforcing cycle of sell-offs and price plunges.

Institutional investors continue to flee

Adding to the gloom, institutional investors are pulling billions from the market. According to CoinShares, crypto investment products saw another $876 million in outflows last week, bringing the four-week total to a staggering $4.75 billion. Bitcoin funds were hit the hardest, seeing $756 million in redemptions.

Technical indicators aren’t painting a pretty picture either. Bitcoin’s price is nearing a critical breakdown level, and analysts warn that a weekly close below $82,000 could trigger even more pain.

Meanwhile, the Crypto Fear & Greed Index has plunged to 10—its lowest level since 2022—suggesting that fear is running rampant.

It looks like Bitcoin needs a stronger catalyst to break out of this slump. At the time of writing, Bitcoin is sitting at $79,671.43.