The cryptocurrency market faced a sharp downturn on Saturday, with Bitcoin and most major altcoins falling significantly.
Bitcoin dropped below $80,000 for the first time in months, reaching around $75,000. Ethereum also fell to approximately $2,300. Overall, the market capitalization of all cryptocurrencies fell to about $2.63 trillion, a 5.5% decline in 24 hours.
Smaller tokens suffered even larger losses. Coins such as River, Story, Lighter, Virtuals Protocol, Worldcoin, and Pudgy Penguins plunged over 15%.
The crash coincided with high liquidation levels. Over $1.6 billion in crypto positions were liquidated, including $570 million in Bitcoin and $554 million in Ethereum. More than 408,000 traders were affected. Futures open interest also fell to a low of $113 billion, signaling reduced investor activity.
Experts say the downturn is linked to ongoing Bitcoin ETF outflows in the U.S., which have lasted three months. Investors remain cautious as the Crypto Fear and Greed Index dropped to 26, entering the fear zone.
Geopolitical and economic concerns added pressure. Market watchers are worried about the potential nomination of Kevin Warsh as Federal Reserve Chair, known for his hawkish policies, and possible tensions between the U.S. and Iran that could increase oil prices and market volatility.
The recent declines have raised questions about Bitcoin’s reliability as a safe-haven asset during times of uncertainty.
