Bitcoin Plunges Below $80,000 as Crypto Market Loses $1 Trillion in Value

Bitcoin has plummeted below the $80,000 threshold as part of a broader cryptocurrency market correction that has eliminated approximately $1 trillion in combined market value. The dramatic decline has sparked concerns among investors that further downward price action could be on the horizon.

The world’s leading cryptocurrency is now trading approximately 25% below its record high of almost $110,000, a swift reversal that market observers are attributing to various forms of price “suppression.” This sharp correction comes amid warnings from analysts cautioning investors against hastily “buying the dip.”

Technical analysts are now providing estimates for how severe this Bitcoin Price correction might become. Ruslan Lienkha, chief of markets at cryptocurrency platform YouHodler, offered his perspective on potential support levels: “According to technical analysis, the next target for Bitcoin’s price is around the $70,000 level, which serves as a strong support zone.”

Lienkha added a cautionary note about broader market conditions: “However, we will only see this level if negative sentiment dominates the equity markets. U.S. stock indices have been in the red for several consecutive days, but it is still too early to conclude that the broader uptrend has ended—it could simply be a market correction.”

This assessment aligns with observations from Markus Thielen, founder of 10x Research, who identified a specific chart pattern emerging: “Bitcoin follows a textbook ascending broadening wedge pattern, which projects a target price in the low $70,000s,” Thielen noted in a research communication.

The current market downturn appears connected to macroeconomic factors, particularly U.S. President Donald Trump’s escalating trade tensions. Investors are rotating capital away from volatile assets like cryptocurrencies as uncertainty grows around international trade relationships.

Agne Linge, head of growth at decentralized onchain bank WeFi, highlighted market sentiment metrics in her analysis: “The crypto market is currently very edgy, with the number 21 reading on the Crypto Fear & Greed index—marking its lowest level since September.”

Linge further elaborated on the connection between trade policy and market behavior: “With the tariffs on Canada and Mexico set to take effect on March 5, the mainstream stock market is reacting to potential economic fallout. Many might continue to rotate capital from risky assets without guaranteed insulation from these trade wars. Based on the regional economic uncertainty, investors need stability, and as a naturally volatile asset, bitcoin does not offer that in the short term.”

The cryptocurrency market correction is occurring simultaneously with U.S. stock markets retreating from their record highs, suggesting a broader risk-off sentiment is pervading financial markets. Investors are now closely watching key support levels to determine whether this represents a temporary correction or the beginning of a more substantial market cycle shift.

For those seeking to stay informed about market developments, the CryptoCodex newsletter provides daily updates for traders and cryptocurrency enthusiasts looking to navigate the current market volatility.

Interested parties can also unlock over $3,000 in NFT, web3 and crypto perks through specialized programs designed for cryptocurrency market participants.

✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.

Previous Articles:

• Bitcoin Dips Below $80K as Social Media ‘Buy the Dip’ Sentiment Reaches 7-Month High
• Saga Executive Discusses Cryptocurrency Industry Transformation at GOP-ETH Denver Event
• Web3 Game “The Mystery Society” Suspends Development Amid Funding Struggles
• Coinbase Joins Open Agents Alliance to Build AI Infrastructure with Blockchain Firms
• SEC: Memecoins Not Classified as Securities, But Fraudulent Tokens Face Regulatory Risk