Bitcoin Plunges Below $80K, Crypto Market Bleeds $1T

Bitcoin has plummeted below $80,000, marking its lowest point since November 2024, as the broader crypto market experiences a significant downturn. The ongoing sell-off has erased nearly all gains recorded after Donald Trump’s election victory, signaling a period of intense volatility.

Data from CryptoSlate shows that Bitcoin fell by more than 8% in the last 24 hours, briefly touching $78,790 before recovering to $79,200. Over the past week, the leading digital asset has lost 20%, dropping from over $100,000 to current levels. With this performance, Bitcoin price has now returned to levels last seen after Trump’s election victory in November 2024.

Meanwhile, the decline isn’t limited to Bitcoin. Leading altcoins have also suffered sharp losses. Ethereum has plunged nearly 50% from its post-election peak in late 2024, while BNB, Solana, XRP, Dogecoin, and Cardano have shed up to 10% in the last 24 hours. As a result, the market-wide unrealized losses have surpassed $1 trillion in the past month, reflecting growing investor unease.

This volatility has triggered widespread liquidations. CoinGlass data reveals that over $918 million of leveraged positions have been wiped out, impacting more than 225,000 traders. Most of these losses hit long traders betting on price increases, with $810 million liquidated. Expecting a further decline, short traders also saw $108 million erased.

However, despite this bloodbath, crypto enthusiasts have argued that these corrections are typical for the market. Marc van der Chijs, the co-founder of Bitcoin miner Hut8, wrote on X: “Markets are extremely nervous, but zoom out and you’ll see that nothing has changed. 30% drops happen a few times every bull market, normally followed by a huge price explosion.”

Market analysts attribute the ongoing downturn to a combination of factors, including uncertainty over Donald Trump’s tariff policies, weakened investor confidence, and a substantial $3 billion outflow from Bitcoin spot ETFs. According to The Kobeissi Letter, fears of a trade war have significantly impacted risk assets, wiping out $800 billion from