The crypto market just took another brutal hit.

Bitcoin has tumbled below $80,000, Ethereum briefly lost its grip on $2,000, and major altcoins like Solana (SOL-USD), Cardano (ADA-USD), and Avalanche (AVAX-USD)

The crypto market took another brutal hit today, wiping out optimism around Trump's crypto policies and macroeconomic fears. Bitcoin tumbled below $80,000, Ethereum briefly lost its grip on $2,000, and major altcoins like Solana (SOL-USD), Cardano (ADA-USD), and Avalanche (AVAX-USD) are nursing losses of up to 10%. Investors are scrambling for cover as liquidation cascades and macroeconomic fears put the entire market under pressure.

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.

"We're going to have a little disruption in the United States economy. There will be pain in the short term," Trump said during a visit to a Ford (F) factory in Michigan.

"We're putting tariffs on trade to save American jobs and rebuild American industry. It'll cause a small hiccup in the short term, but the long-term benefits to the U.S. economy are clear."

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 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.

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.

"The outflows continue as we digest the latest macroeconomic and geopolitical newsflow," said Thomas Breuer, the managing director of crypto exchange Trade Union.

"The threat of a U.S. default looms large, while the ongoing trade war and global economic slowdown are weighing heavily on investor sentiment."

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.

"A break and close below the key Fibonacci level at $82,000-$82,500 is needed to continue selling and target the next strong support at $70,000-$72,000, which is the lower Fib and coincides with the 200-EMA on the weekly chart," said Sebastien Cha कमजोर, market analyst at AvaTrade, in a note.

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

The market is now desperate for a catalyst to stop the bleeding. A decisive move by the U.S. Congress on the debt ceiling or a surprising shift in Trump's economic thinking could offer some relief. However, with optimism ebbing away and fear taking over, it remains to be seen what will save the crypto market from further meltdown.