Bitcoin tumbled below $80,000 on Monday, pressured by a broader sell-off in equities and growing economic uncertainty.
After breaking key support levels over the weekend, BTC has continued to plunge, trading at $78,731.41 currently, down 3.69% in 24 hours.
Investors remain wary of a potential recession, as former US President Donald Trump has not ruled out the possibility.
Wall Street’s top seven stocks and major indexes are also in decline, amplifying risk-off sentiment.
Ethereum mirrored Bitcoin’s slide, plunging 9.86% to $1,846.04—its lowest since November 2023.
Since the US government proposed a Strategic Bitcoin Reserve (SBR), BTC has dropped 11.28%.
JAN3 CEO Samson Mow attributed the downturn to multiple factors, including market sentiment, liquidations, stop-loss triggers, and broader market reactions.
He also pointed to a “sell-on-the-news” effect, where traders offload assets following major announcements.
https://t.co/9qi3OWpCrC
— Samson Mow (@Excellion) March 10, 2025
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With sentiment at levels not seen since the 2022 bear market and long liquidations mounting, analysts now question whether Bitcoin has found a floor or if further declines lie ahead.
Crypto market sentiment has plunged into extreme fear, with the Crypto Fear & Greed Index dropping to 24 from its peak of 92+ last year.
This sharp decline reflects a broader market correction driven by substantial capital outflows from digital assets.
In just four hours, total liquidations have exceeded $195 million, with long positions accounting for $161 million—signalling that many traders were caught off guard, triggering forced liquidations and deepening Bitcoin’s decline.
US policy shifts have intensified selling pressure.
President Trump’s new tariffs on Canada, Mexico, China, and potentially the EU have spooked institutional investors, pushing them away from risk assets like crypto.
The Kobeissi Letter highlighted that spending cutbacks by the Department of Government Efficiency (D.O.G.E) have also contributed to the downturn, with the crypto market shedding $1 trillion in market cap over the past two months.
Adding to the uncertainty, Trump’s remarks at the White House Crypto Summit on Friday further rattled investors.
He confirmed plans for a US Bitcoin Reserve, stating that the government will use seized BTC but will not make additional purchases—dampening confidence and fuelling further sell-offs.
Mow attributes Bitcoin’s recent decline to sellers’ willingness to offload assets at lower prices, driven by broader market sentiment, macroeconomic uncertainties, and intraday trading dynamics.
Additionally, market reactions to cryptocurrency-related news have intensified volatility.
While Bitcoin remains distinct in the US national stockpile, other cryptocurrencies such as ADA, SOL, XRP, and ETH are also held but kept separate.
This distinction highlights Bitcoin’s unique status but does not shield it from market fluctuations.
Mow likened the proposed Strategic Bitcoin Reserve to a "Fort Nakamoto," referencing Fort Knox, where US gold reserves are stored.
The next phase involves an official audit to determine the exact amount of Bitcoin the US government holds, currently estimated at 200,000 BTC seized from illicit activities over the past decade.
He noted:
“The establishment of the U.S. Strategic Bitcoin Reserve is complete game-changer. As President Trump begins construction of Fort Nakamoto, we will learn exactly how much Bitcoin the U.S. has and then we will start to see Secretary Lutnick initiate budget neutral strategies to accumulate Bitcoin.”
Mow suggests that if the US formally begins accumulating Bitcoin, other nations may follow suit, potentially reshaping the global financial landscape.
Market experts remain divided on Bitcoin’s trajectory.
Former BitMEX CEO Arthur Hayes predicts a drop to $70,000 before the next bullish cycle takes hold.
He told the community to be patient first.
Others argue that Bitcoin’s movements are closely tied to liquidity trends, pointing to the recent recovery in M2 money supply—an economic indicator that includes cash, checking deposits, and easily convertible assets.
Analysts at Crypto Stream wrote:
“Some argue that liquidity—measured through M2 money supply—is the real driver of Bitcoin’s price. M2 money supply bottomed and has been recovering sharply. If this holds true, we should see Bitcoin start grinding higher in the coming weeks.”
However, sceptics caution that rising M2 liquidity does not necessarily translate into crypto inflows.
A meaningful rebound may require greater regulatory clarity and a reassessment of the broader impact of Trump’s trade tariffs, which have unsettled global markets and pressured risk assets, including cryptocurrencies.
As Bitcoin hovers under selling pressure, the coming weeks will reveal whether this downturn deepens or paves the way for a renewed rally.
Hedge fund QCP said in a Telegram broadcast:
"Until crypto finds a new narrative, we're likely to see an increased correlation between BTC and equities in the near term. Both risk assets are currently trading near their recent lows, and with tariff risks still looming, volatility could pick up heading into key U.S. macro data releases."
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