Bitcoin Plunges to $79K, Market Cap Drops 6.49%

The cryptocurrency market experienced a significant downturn on [Date], with the total market capitalization dropping by 6.49% to $2.63 trillion. This decline was primarily driven by a sharp decrease in the price of Bitcoin (BTC), which fell to $79,000, causing widespread panic among investors.

Over the past 24 hours, BTC has declined by 8%, raising concerns about its future prospects. Many investors had previously viewed $82,000 as the lowest level for BTC, but the recent drop has raised fears that the price could fall even further, potentially reaching $70,000 in the coming days.

The sudden drop in BTC's price has created fear and panic among investors, leading to fast liquidations. In just 24 hours, Bitcoin's liquidation hit $327 million as investors were unprepared for such a sharp dip. The BTC drop is not isolated, as other cryptocurrencies like XRP, Ethereum (ETH), BNB, Solana (SOL), and others on the top 10 list have also lost significantly. XRP, an altcoin associated with Ripple, faced a decline of 8.2% in the last 24 hours.

The current market downturn is primarily due to macroeconomic concerns. The major catalyst is the threat by U.S. President Donald Trump to impose a 25% tariff on imports from the European Union, Mexico, and Canada. The anticipated increase in import prices has created inflationary concerns, and hence, investors are seeking safe assets, i.e., the U.S. dollar and government bonds.

Institutional investors are also taking back Bitcoin investments. U.S. spot Bitcoin ETFs had $275 million of net withdrawals on February 27, bringing total withdrawals for the week to date to $2.7 billion. This is a far cry from the earlier institutional frenzy that drove Bitcoin to its all-time high in January, after Trump's inauguration.

Despite these intense fluctuations, some investors remain optimistic. The Bitcoin drop raised a "by the dip" campaign on social media platforms, pressing on the potential of Bitcoin's long-term growth. However, many warn that excessive optimism during downturns may turn the tables and lead to a more drastic fall.

BitMex Co-founder