Crypto Market Plunges: Bitcoin Drops Below $80K, Altcoins Correct by 8%

The cryptocurrency market experienced a significant downturn today, with Bitcoin's price falling below $80,000 and top altcoins like Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) correcting by around 8% each. The market bloodbath has extended weekly losses for BTC and other digital assets to more than 20-25%.

Since the inauguration of US President Donald Trump, the crypto market has erased over $900 billion in value, with the total market cap dropping from $3.7 trillion to $2.8 trillion. Bitcoin's price has declined by more than 21% on the monthly chart after facing rejection at $106K levels. BTC's losses have further exacerbated after the asset lost the crucial support of $95K.

The recent market uncertainties have led Bitcoin to behave oppositely to gold, which has been trending higher. Throughout the trade war, gold prices have continued to inch higher, extending their year-to-date gains to nearly 10%. Gold has reclaimed its position as a favored global hedge amid uncertainty, with Gold ETFs purchasing an impressive 52 tonnes of the metal last week. Over the past 12 months, gold prices have surged by more than 50%, recently achieving their best annual performance in over a decade.

Crypto analyst Justin Bennett suggests that Bitcoin may be on track to close the $77,360 CME gap from November, potentially aligning with the September 2023 trendline. However, Bennett expressed skepticism about Bitcoin's ability to maintain its current levels, stating that a miraculous February close above $92,000 would be needed to avoid a bearish outlook. On the other hand, CryptoQuant CEO still believes that the Bitcoin bull run hasn't ended and it is very unlikely that the Bitcoin price will fall under $77,000 in this crypto market crash.

Ethereum has been leading the altcoins market crash, dropping an additional 8% today and moving all the way to $2,100. With today's drop, ETH has completely erased its post-election rally. Ethereum has declined by nearly 50% from its peak following the late-2024 election. As of press time, ETH price is trading 7.7