Bitcoin Plunges Below $80K as ETF Outflows Surge

Bitcoin (BTC) has experienced a significant decline, falling below the crucial $80,000 support level. This marks a 27% drop from its January all-time high of $109,000, representing the largest correction since the cryptocurrency's recent bull run began.

As of Thursday evening, Bitcoin was trading at $78,551, with the decline accelerating after breaking through the $80,000 support level. This price point puts Bitcoin below its 200-day moving average, a technical indicator that traders use to gauge market momentum.

The pullback comes as spot Bitcoin ETF products experience mounting outflows. February has seen investors withdraw more than $2 billion from these investment vehicles, marking the largest monthly outflow since their launch. The most recent data shows $275 million in net outflows on February 27 alone.

Trading volumes have increased during the selloff, with liquidations reaching $327 million in the past 12 hours. Long positions, which bet on price increases, have faced the heaviest losses according to data from Coinglass.

Market sentiment has shifted notably since January when Bitcoin reached its peak following Donald Trump's election victory. The cryptocurrency market is now responding to broader economic concerns, particularly related to trade policy. The announcement of proposed 25% tariffs on imports from Canada, Mexico, and the European Union has created uncertainty in global markets, leading investors to move capital toward traditional safe-haven assets, including the U.S. dollar and Treasury bonds.

Adding to market pressures, the cryptocurrency industry faced its largest security breach to date last week. The Bybit exchange reported a $1.4 billion theft, raising fresh concerns about digital asset security and contributing to negative market sentiment. The total value lost to crypto hacks in 2025 has already reached $1.6 billion, approaching the entire 2024 total of $2.2 billion.

On-chain data provides some insight into investor behavior during this correction. Analysis shows that most selling pressure comes from newer market participants, while long-term holders have largely maintained their positions. Federal Reserve policy has also influenced market dynamics, with recent inflation data reducing expectations for immediate interest rate cuts, traditionally a headwind for risk assets like Bitcoin.

The U.S. dollar's strength