Just a few weeks ago, Bitcoin looked unstoppable.
After smashing through record highs and turning global markets bullish, the world’s largest cryptocurrency carried the confidence of a financial giant.
But markets have a way of reminding investors that nothing goes up forever.
On Friday, Bitcoin crashed to a seven-month low, flirting with the US$80,000 level — a zone many analysts warn could trigger even sharper losses. Ethereum and other major cryptos followed suit, leaving traders stunned and raising tough questions about whether the crypto boom of 2024 is now unraveling.
Bitcoin Plunges Toward US$80,000 as Market Fear Spreads
Bitcoin fell to US$80,553, while Ethereum touched a four-month low, leading a broader global exit from risky assets.
The selloff was fueled by:
- Concerns over inflated tech valuations
- Weak investor sentiment
- Uncertainty around U.S. interest rate cuts
Cryptocurrencies — often viewed as a barometer of global risk appetite — are now signaling just how fragile market confidence has become.
A Brutal Week: Bitcoin Down 12%
Bitcoin has now erased all of its year-to-date gains, falling 12% this week alone.
This comes after an extraordinary year in which Bitcoin soared past US$120,000 in October, driven by:
- Favorable crypto regulation across major economies
- Strong ETF inflows
- Optimistic institutional adoption
But analysts say the sentiment shifted dramatically after last month’s record US$19 billion liquidation event, the largest single-day crypto wipeout in years.
Bitcoin Falls Below Investor Entry Levels
As Bitcoin broke through US$100,000 and headed toward US$80,000, analysts warned that these levels are dangerous.
Why?
Because many corporate and institutional buyers purchased their Bitcoin around this range.
Falling below their average entry levels increases the likelihood of:
- Forced selling
- Liquidation to avoid losses
- A potential cascading decline
This selling pressure could amplify market panic.
Ethereum and Altcoins Aren’t Spared
Ethereum has fallen nearly 19% year-to-date, while the total crypto market has seen US$1.2 trillion wiped out in just six weeks, according to CoinGecko.
Crypto Treasury Firms Face Massive Trouble
Several companies that bought Bitcoin as part of their corporate treasury strategy are now underwater.
Key problems:
- These firms purchased Bitcoin expecting steady gains
- Their share prices have now collapsed
- They might face emergency fundraising or forced selling
Strategy, the biggest corporate Bitcoin holder, has seen its shares plunge 61% since July.
JP Morgan even warned that Strategy could be kicked out of major MSCI equity indexes — a move that could trigger forced selling by index-tracking funds.
Japan’s Metaplanet has also fallen 80% from its peak.
Historical Risk: Could Bitcoin Fall to US$25,000?
Analysts are now comparing the current decline to the major crypto crashes of:
- 2018
- 2022
Both saw Bitcoin fall by 75–80%, which — if repeated — would push Bitcoin down to around:
US$25,000
Brent Donnelly of Spectra Markets notes:
“I am not saying we are in a crypto winter. Just reminding that 75% to 80% drawdowns are part of Bitcoin’s history.”
What This Crash Means for Global Markets
According to IG analyst Tony Sycamore:
“If Bitcoin is telling a story about risk sentiment as a whole, things could get really ugly.”
Markets have already responded:
- AI stocks have fallen sharply
- Volatility is rising
- Investors are shifting to safer assets
- Tech valuations are under scrutiny
Bitcoin often signals market stress before traditional assets do — and right now, the message is clear.
Which crypto will explode in 2025?
Analysts are watching several sectors:
- AI-driven crypto projects
- Layer-2 scaling solutions
- Real-world asset tokenization (RWA)
- Top altcoins like Solana, Chainlink, and Avalanche
But predictions remain speculative — Bitcoin and Ethereum still dominate long-term institutional confidence.
Did Tesla dump 75% of its Bitcoin?
Yes.
Tesla sold 75% of its Bitcoin holdings in 2022 to strengthen cash reserves during uncertain market conditions.
The company still holds a small amount of Bitcoin, though recent disclosures are limited.
What is the BTC price prediction for 2025?
Forecasts vary widely:
- Bullish: US$150,000 – US$250,000
- Moderate: US$90,000 – US$120,000
- Bearish: US$40,000 – US$60,000
The outcome will depend on:
- Regulation
- ETF inflows
- Institutional buying
- Global interest rates
- Economic stability
Conclusion
Bitcoin’s sudden fall below US$81,000 has sent shockwaves across global markets.
With treasury firms under pressure, institutional buyers nearing loss thresholds, and volatility rising, crypto is entering a decisive moment.
Whether this becomes a temporary correction or the beginning of a deeper slide will depend on the market’s ability to stabilize above key levels — especially US$80,000.
For now, risk sentiment remains fragile, and investors worldwide are watching closely.