Bitcoin has dropped below $80,000, marking a 27% decline from its January all-time high of $109,000. The price movement represents the largest correction since the cryptocurrency’s recent bull run began.
Data from major exchanges shows Bitcoin trading at $78,551 as of Thursday evening, 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. These trade tensions have led investors to move capital toward traditional safe-haven assets, including the U.S. dollar and Treasury bonds.
Market Analysis
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. This surge in security incidents has made some investors more cautious about their cryptocurrency holdings.
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. Recent inflation data has reduced expectations for immediate interest rate cuts, traditionally a headwind for risk assets like Bitcoin.
The U.S. dollar’s strength and declining Treasury yields have created additional challenges for Bitcoin’s price momentum. These factors typically correlate with decreased appetite for cryptocurrency investments.
Social media sentiment indicates that some retail investors view the current price levels as a buying opportunity. Data from Sentiment shows an increase in “buy the dip” messages across major platforms, though historical patterns suggest such optimism during downturns often precedes further price declines.
Traders are showing a very high level of confidence that this dip is ‘the one to buy’, according to the spike in discussions across X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster. Ideally, we are waiting for this crowd enthusiasm to die down as a signal that enough… pic.twitter.com/nM99sLw4v3
BitMEX co-founder Arthur Hayes has noted that Bitcoin remains in a downtrend, forming lower lows. His analysis suggests the possibility of further price drops to the $70,000-$75,000 range over the weekend.
Technical analysts are now watching the $75,000 level as the next major support zone. Market participants are also closely monitoring ETF flows for any signs of renewed institutional interest.
The current correction appears relatively mild compared to Bitcoin’s history. Past market cycles have seen at least 16 corrections from all-time highs, with declines ranging from 30% to 85% before recovery.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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Traders are showing a very high level of confidence that this dip is ‘the one to buy’, according to the spike in discussions across X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster. Ideally, we are waiting for this crowd enthusiasm to die down as a signal that enough… pic.twitter.com/nM99sLw4v3