Bitcoin plunged below $80,000 for the first time in over three months, hitting $79,850 at 14:30 UTC- a sharp fall from its previous close of $82,300 on February 27, 2025 (CoinMarketCap).
The Kobeissi Letter highlighted the rapid losses, while Bloomberg pointed to institutional selling and macroeconomic concerns as key factors.
The drop triggered a surge in trading volume across major exchanges. Binance recorded 23,500 BTC traded in the last 24 hours, well above its weekly average of 18,000 BTC.
Coinbase also saw a spike to 15,000 BTC from its usual 12,000 BTC. Liquidations were severe, with BitMEX alone reporting over $100 million in long positions wiped out within an hour.
Market sentiment shifted toward fear, with the Fear and Greed Index dropping from 45 to 35. Ethereum and Ripple followed Bitcoin's decline, losing 4% and 3.5%, respectively. Meanwhile, Bitcoin's dominance rose from 43% to 45%, signaling investor rotation from altcoins to Bitcoin.
Technical indicators reinforced the bearish trend, with Bitcoin's RSI falling to 38, indicating oversold conditions, and a bearish MACD crossover suggesting continued downside. On-chain data showed a 10% drop in active addresses and a decline in transaction volume from $18 billion to $15 billion.
AI-related tokens like SingularityNET (AGIX) and Fetch.ai (FET) also fell, correlating with Bitcoin's decline.
