Bitcoin plunges to $80K amid extreme fear! Market liquidations exceed $620 mln—Is a recovery on the horizon?
- Bitcoin hits $80K as market liquidations surpass $620M, sparking extreme fear among investors. Despite volatility, analysts predict Bitcoin could surge to $180K by 2026—Is this the next big rally?
The crypto market faced another day of losses as traders reacted to ongoing trade tensions and the latest economic data.
The total market capitalization dropped by 4.53% to $2.7 trillion, with Bitcoin [BTC] and Ethereum [ETH] experiencing sharp declines.
Bitcoin briefly fell to an intraday low of $80,000 while Ethereum lost nearly 6%, leading to widespread concerns among investors.
The broader altcoin market also suffered, with Solana [SOL] and XRP recording notable losses.
This downward movement came despite recent pro-crypto developments in the United States, including a strategic Bitcoin reserve announcement by former President Donald Trump.
According to the “Fear & Greed Index,” market sentiment has fallen into “Extreme Fear,” with a score of 17. Over $620 million in liquidations have been recorded, intensifying selling pressure, based on Coinglass data.
Bitcoin faces further selling pressure
Market analysts have noted a rise in leveraged positions, leading to a higher risk of forced liquidations.
According to Alphractal, many altcoins now have open interest values exceeding their market capitalization, signaling a heavy reliance on leverage.
Alphractal stated,
“Since many traders tend to take long positions most of the time, forced liquidations are larger and more common when the market drops.”
Arthur Hayes, co-founder of BitMEX, also warned of possible further declines in Bitcoin’s price.
He pointed out that a large number of Bitcoin options were positioned between $70,000 and $75,000, which could lead to increased volatility if the asset moves into that range.
Bitcoin price prediction: Could it reach $180K by 2026?
Despite the current market downturn, some analysts remain optimistic about Bitcoin’s long-term trajectory.
A CryptoQuant analyst has maintained a price prediction of $150,000 to $200,000 for Bitcoin in the upcoming bull cycle, expecting a new all-time high (ATH) of $180,000 by 2026, stating,
“I expect Bitcoin to reach the $150K-$200K range in this upcoming bull cycle. Even major banks have recently started making similar or higher predictions.”
As of press time, Bitcoin was trading around $82,307, and the analyst believes the asset could more than double in value within a year.
U.S. Government’s strategy raises questions
The U.S. government recently announced that it would not sell the nearly 200,000 Bitcoins acquired from the Silk Road case. Instead, these holdings will be included in a strategic reserve.
This decision has eased concerns about a potential mass sell-off that could have added further pressure to the market.
Meanwhile, large investors, often referred to as “whales,” continue to accumulate Bitcoin, despite the market’s ongoing volatility.
Some market observers suggest this could be a sign of confidence in the asset’s long-term potential. However, the sustained fluctuations indicate that uncertainty remains a key factor in the current crypto landscape.
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