Nearly every cryptocurrency trader felt the pain Thursday as Bitcoin plummeted below the $80,000 mark, hitting as low as $78,159.41 during a brutal New York trading session. The premier digital asset closed at $78,479.21, reflecting a 5% decline in just 24 hours and continuing its downward trajectory that’s erased 25-30% of its value over the past year.
Let’s face it: the carnage wasn’t isolated. Total liquidations across crypto positions hit a staggering $1.61 billion in a single day. Ouch. Ether took the biggest hit with $560 million in liquidations, followed by Bitcoin at $481 million and Solana at $95 million. More than 358,000 traders got wiped out. One unlucky Ether trader on Hyperliquid saw $13.38 million vanish in a single liquidation.
The altcoin market didn’t escape the bloodbath either. Ethereum tumbled 12% to around $2,400, while XRP and Solana both fell 11%. BNB dropped 8% to $779.57. This market-wide crash has seriously challenged Bitcoin’s role in investment portfolios. This volatility highlights why clear investment goals are essential for navigating unpredictable market conditions and establishing acceptable loss thresholds. Across the board, major cryptocurrencies posted weekly losses exceeding 10%. Not exactly the “to the moon” scenario enthusiasts had hoped for.
The broader crypto market lost an astonishing $111 billion in value over 24 hours, with $100 billion disappearing in just five hours. The total market cap shrank to $2.73 trillion, a 6% decline. Low liquidity and minimal retail interest only made things worse.
Meanwhile, institutional investors headed for the exits. U.S. Bitcoin ETFs saw nearly $1.5 billion in outflows during the week, with major providers like BlackRock, Fidelity, and Grayscale all experiencing redemptions.
Bitcoin’s supposed role as a hedge against economic uncertainty? That narrative isn’t looking too hot right now. The ongoing US government shutdown is further exacerbating investor anxiety and market instability across crypto assets. Traditional safe havens like precious metals and cash are regaining popularity while Bitcoin struggles.
The last time Bitcoin traded this low was April 2025. With trading volumes expected to remain depressed for up to two quarters, the road to recovery looks long and bumpy. So much for digital gold.
