Nearly every cryptocurrency enthusiast felt the shockwaves as Bitcoin plunged below the $80,000 mark, dropping to $77,396.43 in a dramatic 7% decline over 24 hours. The fallout resulted in a staggering $630 million in total crypto liquidations, with Bitcoin long positions accounting for $210 million of the casualties.
The market turbulence wasn’t isolated to Bitcoin alone. Ethereum, Solana, and XRP experienced similar downward trajectories, contributing to the broader cryptocurrency market downturn. A single massive liquidation order on Binance’s BTCUSDT pair, valued at $32.09 million, highlighted the severity of the market correction. The total crypto market capitalization suffered severe losses with over $440 million wiped out in the past week. Dogecoin experienced particularly severe impacts, with the meme coin seeing massive liquidations of over $22 million in just 24 hours.
Multiple factors converged to create this perfect storm. Economic uncertainty and recession fears loomed large, while disappointment from the White House Crypto Summit added to market jitters. The rapid 10% descent from recent highs intensified market panic. The situation was further complicated by Bybit hackers cashing out $300 million in stolen funds, and thin weekend trading liquidity amplified price movements.
A confluence of market pressures, from economic fears to cyber theft, created the perfect conditions for crypto’s dramatic plunge.
Technical indicators painted a bearish picture, with Bitcoin breaking below its 200-day exponential moving average at $85,754. The relative strength index (RSI) reading of 36 suggested continued downward momentum, while the MACD’s bearish crossover sent clear sell signals through the market.
Looking ahead, experts project potential tests of the $72,000-$75,000 range mid-week, with possible stabilization near $83,000 by March 18-19. The market’s trajectory remains closely tied to upcoming economic data releases, including CPI and PPI figures, as well as the broader integration of cryptocurrencies with traditional finance.
Market sentiment has grown increasingly cautious, with investors showing a stronger preference for put options in the past 24 hours. The mismatch between market expectations and the reality of crypto initiatives has created an environment where every piece of news carries outsized impact.
As the dust settles, all eyes remain fixed on regulatory developments and the upcoming FOMC meeting for clues about the market’s next major move.
