Bitcoin’s price has dropped below $80,000, marking a 27% decline from its January high of $109,000. The price drop is attributed to $2.7 billion in ETF outflows and concerns over Trump’s proposed tariffs, alongside a major security breach at the Bybit exchange. Retail optimism remains despite historical patterns indicating the possibility of further declines as traders monitor support at $75,000.

Bitcoin (BTC) has fallen below the $80,000 threshold for the first time since November 2024, reaching approximately $79,800 on February 28. This marks a significant 27% decline from its all-time high of $109,000, set in January 2025. Traders previously viewed the $82,000 level as support; however, the breach has shifted expectations towards a potential retreat into the $70,000 range. This downturn aligns with $2.7 billion in ETF outflows, significantly affecting market stability.

The recent decline is exacerbated by macroeconomic uncertainty stemming from former President Trump’s proposed 25% tariffs on imports from Canada, Mexico, and the European Union. Investors are concerned that these tariffs could lead to increased inflation. Despite some analysis suggesting a potential boost to domestic manufacturing, market sentiment is shifting toward risk aversion, prompting capital flows into safer assets such as U.S. Treasury bonds and gold ETFs.

Furthermore, the cryptocurrency market has been shaken by a recent security breach at the Bybit exchange, resulting in the largest crypto theft in history, totaling $1.4 billion. This incident has contributed to heightened selling pressure in an already wavering market, with total losses in crypto hacks in 2025 nearing $1.6 billion. Despite these challenges, there has been a noticeable uptick in retail investor optimism, evidenced by social media discussions that reference “buy the dip.”

Notably, on-chain data suggests that most selling pressure is being generated by less experienced investors, while long-term holders remain inactive. Historical trends indicate Bitcoin has experienced at least 16 significant corrections ranging from 30% to 85% before recovering. In light of current market conditions, traders are closely observing support levels near $75,000 and ETF activity for indications of potential recovery triggers.

The cryptocurrency market’s short-term outlook remains fraught with uncertainty due to ongoing pressures and dynamic situations involving macroeconomic factors and exchange security. Experts are alert to potential further declines, with forecasts suggesting a possibility of Bitcoin testing the ranges of $70,000 to $75,000 if certain legislative developments do not progress favorably.

In summary, Bitcoin’s recent plunge below $80,000 reflects various complex factors, including substantial ETF outflows, macroeconomic uncertainties due to proposed tariffs, and significant security breaches within the market. Historical data highlights the cryptocurrency’s tendency to undergo substantial corrections, with current patterns suggesting potential further declines. Traders are advised to remain vigilant as they analyze support levels and market sentiment for signs of a possible rebound.

Original Source: coincentral.com

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