Bitcoin has fallen below the $80,000 mark for the first time since April, with current trading around $79,113 after a 4% decline over the past 24 hours, as reported by CoinGecko. This marks a significant drop, as the leading cryptocurrency has lost more than 25% of its value over the past year and more than 11% in just the past week.
The recent downturn follows a broader crypto selloff triggered by a liquidation event that occurred on October 10. Investors have pulled nearly $1.5 billion from U.S. Bitcoin exchange-traded funds (ETFs) this week alone, according to data from Farside Investors. These funds, which are managed by companies such as BlackRock, Fidelity, and Grayscale, provide investors with an accessible way to engage with the cryptocurrency market.
Adding to the pressure on Bitcoin’s price, futures traders have faced significant liquidations. In the last 24 hours alone, $1.6 billion in long positions—traders’ bets that the market would rise—were closed, according to Coinglass. The current market sentiment indicates a retreat from risk as geopolitical tensions and the partial U.S. government shutdown weigh heavily on investors.
The shutdown has raised concerns reminiscent of last year’s similar situation, which negatively impacted crypto prices. President Donald Trump has indicated a willingness to collaborate with Democrats to ensure the shutdown remains brief; however, uncertainty continues to cloud the market. In conjunction with these developments, tech stocks also faced a selloff earlier this week, further influencing cryptocurrency values amid an ongoing trend of correlation between crypto and equity markets.
Ethereum has not escaped the downturn, with its price recently trading around $2,401 after a steep 12% decline in the last 24 hours. Other major cryptocurrencies also experienced significant drops, with XRP and Solana down 10% and 11%, respectively.
Overall, the current market climate indicates a tumultuous period for Bitcoin and other cryptocurrencies as investors navigate through volatility fueled by economic and political factors.
