Bitcoin has plunged to $90,658.85, down 4.88% in the last 24 hours, after briefly dipping to $89,600, intensifying fears among traders of a deeper decline to the $80,000 level.
The current sell-off represents a significant reversal after Bitcoin's struggle to maintain support above $95,000, signaling a potential shift from consolidation to a more pronounced bearish trend.
The shockwaves from Bitcoin's tumble extend beyond the cryptocurrency itself, with crypto market sentiment steeped in what some describe as extreme fear.
This widespread anxiety is reflected in a steep broader market decline and heavy sell-offs in crypto-related stocks.
Investors are closely watching whether Bitcoin will breach key technical support levels, which could fuel further downside momentum.
A Market Caught in a Fear Spiral
Bitcoin's drop comes amid mounting pressure from multiple sources including an ongoing liquidity crunch, risk-asset aversion, and a surge in large-holder selling.
The crypto market's sensitivity to movements in traditional tech stocks, notably the recent decline in AI-focused equities, has exacerbated the retreat in digital assets.
This correlation underscores the fragile state of crypto as part of the broader speculative investment landscape.
Notably, Bitcoin exchange-traded funds (ETFs) have experienced significant outflows, with $867 million pulled out in a single day—the largest since early 2025.
This capital flight signals waning institutional confidence and heightens fears of further price deterioration.
The market's Crypto Fear & Greed Index is currently in the "Extreme Fear" zone, levels not regularly seen since the 2022 crypto crash.
Eyeing the $80,000 Threshold
The looming $80,000 mark has become a critical psychological and technical boundary for Bitcoin.
Should Bitcoin break decisively below this level, many traders expect a cascade of stop-loss orders and short-selling that could drive prices down sharply.
This scenario has led to an increase in bearish bets, with a significant portion of the market wagering on a free fall toward $80,000 or lower in the near term.
Liquidity challenges, combined with macroeconomic concerns like rising interest rates and market risk rotations, continue to weigh heavily on sentiment.
As one source put it, the "shift from bullish consolidation to bearish momentum" is unmistakable, sparking caution across all trading floors.
Crypto.News explained that the crypto market is responding to external pressures with a sharp decline in major coins, while Bloomberg reported traders increasingly betting on a steep Bitcoin free fall to $80,000, reflecting growing anxiety in market participants.
These fears are reflected in drastic price swings over recent days and heightened volatility.