Market Bloodbath Intensifies as Bitcoin Hits Yearly Low
Bitcoin (BTC) plunged to a yearly low of $86,888 today, triggering a massive market-wide sell-off that resulted in over $1.5 billion in liquidations. The crypto market’s total capitalization shrunk by 9%, dropping from $3.3 trillion to $3.01 trillion in just 24 hours.
In what appears to be connected to recent policy uncertainties, major cryptocurrencies faced severe downward pressure. Ethereum dropped 10.5%, XRP fell 14.5%, and Solana plummeted 18.2%.
Standard Chartered Predicts Further Decline
According to Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, Bitcoin’s troubles may not be over. Despite BTC’s relatively strong performance, Kendrick warns of an additional 10% decline, potentially pushing prices into the low $80,000s.
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Macro Factors Driving the Decline
Several factors are contributing to the current market downturn:
- Large outflows from Bitcoin spot ETFs
- Upcoming trade tariffs on Canada and Mexico
- Declining US Treasury yields
- Solana-based meme coin sell-off
The Crypto Fear and Greed Index has plunged to 25, indicating ‘extreme fear’ in the market for the first time in five months.
Technical Analysis and Market Outlook
The current price action validates earlier predictions from crypto analyst Ali Martinez, who forecasted significant volatility below the $93,400 level. Network activity metrics show declining engagement, potentially signaling waning interest in the asset class.
Silver Lining Amid Market Turbulence
Despite the bearish price action, Bitcoin continues to outperform traditional assets like gold and stocks. Many industry leaders view the current market conditions as a ‘generational opportunity’ for accumulation, suggesting long-term confidence remains intact.
At press time, Bitcoin trades at $88,150, marking a 7.6% decline over the past 24 hours. Traders and investors should maintain strict risk management practices given the heightened market volatility.