News View Non-AMP

Why is Bitcoin Dropping? Bitcoin Falls to $79K as Crypto Market Bleeds

Published by
Mustafa Mulla

Bloodshed in the crypto market doesn’t seem to be stopping. Nearly $700 billion has been wiped out, and Bitcoin has crashed from $99,000 to $79,000 in just eight days – erasing all the gains from the Trump-fueled rally.

Fear is gripping the market, and investors are scrambling to figure out what’s next. Is this just another dip, or is something bigger at play? And more importantly—how low can Bitcoin go?

Bitcoin Falls to Four-Month Low

Bitcoin, the world’s largest cryptocurrency, has dropped more than 5% in the last 24 hours, hitting a four-month low of $79,263. One of the main reasons for this decline is economic uncertainty caused by President Trump’s tariff threats, which have spooked investors.

At the same time, the Crypto Fear and Greed Index has fallen to 21, its lowest level in nearly three years—showing extreme fear in the market.

Short-Term Holders Panic-Sell, Losing Billions

A major part of Bitcoin’s losses comes from short-term holders (STHs) selling in panic. Over the last three days, these investors have collectively lost $2.16 billion.

Here’s how much different groups of investors have lost:

  • Those who bought last week: $927 million lost
  • Those who bought last month: $678 million lost
  • Holders with Bitcoin for 1 to 12 months: $257 million lost
  • Even buyers from the last 24 hours: $322 million lost

This selling trend shows that newer investors are losing confidence and exiting the market quickly.

SEC’s Meme Coin Ruling Adds to the Panic

The U.S. SEC recently ruled that meme coins are not securities, which at first seems like good news. However, this decision has actually made things worse. Meme coins depend heavily on hype and social trends, and with Bitcoin crashing, meme coins have also collapsed, adding more fear to the market.

Disappointment with Trump’s Crypto Promises

Another factor pushing Bitcoin lower is growing disappointment over President Trump’s crypto policies. Many investors had expected strong pro-crypto measures, but progress has been slower than anticipated. This has led to selling pressure, especially on cryptocurrencies that had gained from Trump-related optimism.

Altcoins Plunge

Bitcoin’s drop has affected the whole market. Other major cryptocurrencies have also fallen. Ethereum (ETH) is down 7.5%, XRP has dropped 8.2%, and Solana (SOL) has fallen 9%. This shows that investors are losing trust in the crypto market.

How Low Can Bitcoin Go?

Traders are closely watching Bitcoin’s next move. Some analysts believe Bitcoin needs to fill a gap near $80,000 before it can recover. Crypto analyst AlphaBTC suggests that if Bitcoin fills this gap, it could start a new rally. However, if it fails, prices could drop even further to $73,000.

At the same time, Bitcoin options data shows that more traders are betting on a drop to $70,000. This suggests that some investors expect the market to worsen before it gets better.

The bulls are battered, the bears are in control, and the market is holding its breath for what comes next.

FAQs

Why is the crypto market down today?

The crypto market is crashing due to U.S.-China trade war fears, Bitcoin ETF outflows, and declining investor confidence, wiping out $800 billion.

Is Ethereum crashing too?

Yes, Ethereum dropped 9%, erasing all post-election gains, as bearish sentiment and Bitcoin’s decline impact the entire crypto market.

How do U.S. tariffs affect crypto prices?

Trade war fears drive stock market declines, and since Bitcoin correlates with equities, it also faces downward pressure.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

Best Cryptocurrencies for June 2025: Ripple (XRP), Dogecoin (DOGE), Mutuum Finance (MUTM)

As market sentiment shifts and fresh momentum builds across digital assets, June 2025 presents a…

June 2, 2025

Live Coin Watch Alert: Bitcoin Solaris’s 21M Fixed Supply Creates Your Second Chance at Bitcoin’s Growth Path

When Bitcoin first emerged, its fixed 21 million supply was mocked. Today, that scarcity has…

June 2, 2025

Singapore Cracks Down on Unlicensed Crypto Firms with Strict New Rules

Singapore’s financial authority announces that unlicensed crypto firms operating overseas after June 30 will be…

June 2, 2025

Can U.S. Buy More Bitcoin? Here’s What David Sacks Revealed

On May 27, 2025, US President’s crypto czar, David Sacks, says there is a pathway…

June 2, 2025

After Monero Surge, Wall Street Ponke Gains Momentum, maybe Under $1?

Hackers used Monero to move stolen Bitcoin, pushing XMR up 24 percent to $269. But…

June 2, 2025

Pakistan Allocates 2,000MW for Bitcoin Mining and AI: A Digital Revolution

Pakistan has allocated 2,000 megawatts (MW) of electricity to fuel Bitcoin mining and artificial intelligence…

June 2, 2025