Bitcoin Drops 3.8% to $80,000, Ethereum Falls 4% Amid Market Sell-Off
1min read Bitcoin's price plummeted below $80,000, marking a significant downturn in the cryptocurrency market. This sharp decline erased over $200 billion in market value, causing widespread concern among investors. The sell-off was driven by a combination of factors, including institutional pullouts and the inherent volatility of cryptocurrencies.
Despite the substantial drop, Bitcoin showed signs of recovery, bouncing back to $81,434 after hitting a low of $80,000. This price level is considered strong support, and the cryptocurrency's ability to rebound suggests underlying market strength. However, the sharp sell-off has raised questions about the stability of the crypto market and the potential for further declines.
Arthur Hayes, co-founder of Bitmex, described the fall to $80,000 as an "ugly start to the week" and suggested that Bitcoin could retest the $78,000 resistance level. This sentiment reflects the broader market uncertainty and the potential for continued volatility in the coming days.
Ask Aime: What factors led to Bitcoin's significant downturn, and how might it rebound?
The recent events have underscored the high-risk nature of cryptocurrencies, with institutions pulling out and prices fluctuating wildly. The crypto market's volatility has always been a concern, but the latest sell-off has highlighted the need for caution and careful analysis when investing in digital assets. As the market continues to evolve, investors will need to stay informed and adapt to the changing landscape to navigate the challenges ahead.
Cryptocurrencies extended a sell-off on Monday as risk assets, including equities, tanked during the early U.S. hours. Following a bounce to around $84,000 earlier in the day, perhaps buoyed by Strategy's $21 billion fundraising plan, bitcoin (BTC) slid below $80,000, down 3.8% over 24 hours. The Ethereum blockchain's ether (ETH) briefly slipped below $2,000, to trade near its weakest price since November 2023, down around 4%.
The broad-market CoinDesk 20 Index fell 5%, with Solana's SOL, Cardano's ADA and Aptos' APT, Avalanche's AVAX and NEAR losing between 7% and 10%. The ugly action in crypto markets came as the already-battered U.S 
