Bitcoin Drops 5% to Below $80,000 Amid Broader Market Sell-Off

Bitcoin's price fell below $80,000 on Monday, marking a significant decline from its previous highs. The drop was attributed to sustained selling pressure in the equities market, which had been on a downward trajectory for the past two weeks. Earlier in the day, Bitcoin's price had briefly rallied to around $84,000, but this rebound was short-lived. The decline in Bitcoin's value was part of a broader market sell-off, with other major cryptocurrencies such as Dogecoin and Ether also experiencing notable drops.

The market turmoil led to the liquidation of leveraged positions, particularly affecting traders who had bet on a rally. This sell-off was influenced by various factors, including concerns over U.S. trade tariffs and the potential for a recession. The Federal Reserve's hawkish stance and the strengthening U.S. dollar also contributed to the market's risk-off sentiment. Despite the market turmoil, there were some positive indicators, such as the continued interest in safe-haven assets like gold and the Japanese yen. However, the overall market sentiment remained cautious, with traders reducing their risk exposure until the U.S. economic situation became clearer.

The recent losses extended a two-week downward trend, with the S&P 500 down 2% and the Nasdaq off 3% at the start of the week. This sell-off was driven by renewed fears of the impact of U.S. trade tariffs set to take effect next month and concerns of a potential recession following a recent interview with Donald Trump. The market turmoil led to the liquidation of over $500 million in leveraged trades, highlighting the impact of the sell-off on the broader market. The latest long squeeze sent shockwaves through the market, with traders adopting a risk-off approach until the U.S. economic situation became clearer.

Analysts noted that the decline in Bitcoin's price was part of a broader market sell-off, influenced by concerns over U.S. trade tariffs and the potential for a recession. The Federal Reserve's hawkish stance and the strengthening U.S. dollar also contributed to the market's risk-off sentiment. Despite the market turmoil, there were some positive indicators, such as the continued interest in safe-haven assets like gold and the Japanese yen. However, the overall market sentiment remained cautious, with traders reducing their risk exposure until the U.S. economic situation became clearer.

The market turmoil