Bitcoin Plummets to $77K as Crypto Markets Enter Panic Mode
Bitcoin’s weekend crash has sent shockwaves through the crypto market. The world’s largest digital asset dropped below $80,000, briefly hitting $77,000, levels unseen since April 2025. Since October’s $126,000 peak, bitcoin has lost $800 billion in market value, with $2.5 billion in leveraged long positions liquidated in just 24 hours.
The selloff has pushed bitcoin out of the global top 10 assets, trailing giants like Tesla and Saudi Aramco. Panic is sweeping across social media, and losses are spilling into other markets, from tech stocks to precious metals.
Here’s what’s driving the market’s sudden shift into Extreme Fear.
1. Geopolitical Shock Hits
Reports of potential U.S.–Iran military escalation sparked an immediate selloff. Traders treated bitcoin not as a safe haven, but as a source of liquidity.
During global crises, investors typically flee to the U.S. dollar. Bitcoin, trading 24/7, often acts as the first responder, getting sold to cover losses. With market liquidity still fragile after the October 10 crash, weekend trades amplified the decline.
2. Gold and Silver Take a Hit
The broader “store of value” trade suffered alongside crypto. Gold fell 9% to $4,900, while silver plunged 26% to $85.30. Analysts attribute the drop to a stronger U.S. dollar, fueled by Kevin Warsh’s Fed nomination, pricing out international buyers.
By Sunday, gold and silver recovered slightly: $4,730 and $81, respectively.
3. Liquidation Dominoes
The price drop triggered massive automatic liquidations, wiping out nearly $2.5 billion in long positions. Around 200,000 traders saw their accounts liquidated Saturday alone. Forced selling created a downward spiral, compounding the crash.
Michael Saylor and Market Sentiment
Bitcoin briefly fell below Michael Saylor’s MSTR entry (~$76,037), fueling fears he might be forced to sell. While none of his holdings are collateralized, the market interpreted it as reduced buying power, deepening the panic.
Wall Street Ripples
The selloff extended to traditional markets. Sunday evening U.S. futures showed losses across the board: Nasdaq -1%, S&P 500 -0.6%.
Retail Capitulation vs. Whales
Data shows small investors (less than 10 BTC) selling aggressively after a 35% drop from $126,000. Mega-whales (1,000+ BTC) quietly added to positions, absorbing retail panic but not enough to stabilize prices.
Bigger Picture
Despite the chaos, crypto markets are maturing: institutional adoption is growing, ETFs are expanding, and public crypto companies are entering mainstream portfolios.
Yet human behavior remains unchanged. Speculation, panic, and boom-bust cycles persist. If history repeats, bitcoin could fall 80% from October’s peak, possibly reaching $25,000, clearing excesses and setting the stage for the next bull run.
As Warren Buffett warned: “It’s only when the tide goes out that you discover who’s been swimming naked.” The tide may not be fully out, but the warning signs are flashing red.
