Bitcoin experienced a significant decline on Saturday, dropping below the $80,000 mark for the first time since April 2025. The world’s leading cryptocurrency fell as much as 10%, reaching $75,709.88 during trading hours in New York. This downturn has now resulted in a more than 30% decrease from its peak value, raising concerns about the overall health of the crypto market.
In addition to Bitcoin, other major cryptocurrencies suffered severe losses. Ether saw a decline of up to 17%, while Solana briefly plummeted by a similar amount. The overall selloff wiped out approximately $111 billion from the total cryptocurrency market capitalization within a 24-hour period, as reported by CoinGecko. Leveraged positions were also heavily affected, with around $1.6 billion in both long and short positions being liquidated, primarily in Bitcoin and Ether, according to market data from Coinglass.
Analysts attribute the latest market pullback to thinning liquidity and a lack of new buying interest. Ki Young Ju, CEO of CryptoQuant, pointed out that Bitcoin’s realized capitalization has stagnated, suggesting that new investments are no longer entering the asset. Ju remarked, “When market cap falls without realized cap growing, that’s not a bull market.” He also noted that early Bitcoin holders are still benefiting from unrealized gains thanks to earlier aggressive purchases, including those driven by exchange-traded funds focused on Bitcoin and investments from firms like Michael Saylor’s MicroStrategy.
Despite the support that ongoing inflows provided to maintain Bitcoin’s price near $100,000 throughout much of the previous year, recent profit-taking by long-term holders has compounded the downward pressure starting from early 2024, coinciding with a significant slowdown in demand.
Ju remained vigilant but optimistic about the future dynamics of the market. He suggested that a catastrophic crash akin to previous cycles was unlikely unless MicroStrategy starts selling off its Bitcoin holdings. Nevertheless, the persistent selling pressure has left the market hovering without a definitive near-term bottom.
The retreat in Bitcoin’s price mirrors levels seen during the aftermath of the “Liberation Day” fallout, which has compounded the frustrations for investors. Despite various favorable conditions earlier in the month, including a weaker U.S. dollar and spikes in gold prices, Bitcoin has shown little resilience. Furthermore, delays concerning new regulatory frameworks for the U.S. crypto market have further diminished investor confidence.
Looking ahead, Ju anticipates that the current downturn may not lead to a swift recovery but rather result in extended periods of sideways trading. “This bear market is more likely to form a wide-ranging consolidation,” he concluded, indicating a cautious outlook for the cryptocurrency market in the near future.
