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-Token's market value has now slipped behind Tesla’s, pushing it to the world’s 12th-largest asset by capitalisation
Bitcoin’s latest selloff has pushed the world’s largest cryptocurrency into its sharpest monthly losing streak in more than a year, underscoring how fragile risk appetite has become across digital assets.
The token fell nearly 8 per cent in Saturday trading to dip below the $80,000 mark, touching levels last seen in April 2025. By midday in New York, Bitcoin was changing hands near $78,160, while the broader market also sank sharply, dragging total crypto market capitalisation below $2.8 trillion.
The selloff has been broad-based. Solana and Dogecoin slid about 13 per cent to around $102.9 and $0.10 respectively, while Ripple dropped roughly 10 per cent to $1.56. Bitcoin’s market value has now slipped behind Tesla’s, pushing it to the world’s 12th-largest asset by capitalisation, according to CoinGecko data. Over the past seven days alone, Bitcoin has lost more than 9 per cent, while the CoinDesk 20 index, a benchmark tracking major tokens, has fallen 12.4 per cent. That slump has driven the widely watched Crypto Fear & Greed Index into “extreme fear” territory.
At the centre of the market shock is a decisive shift in macro expectations. President Donald Trump’s nomination of former Federal Reserve governor Kevin Warsh as the next Fed chair triggered a surge in the US dollar and a sharp repricing of interest rate expectations. Warsh is widely viewed as more hawkish than current chair Jerome Powell, prompting traders to scale back bets on rate cuts in 2026. The Dollar Index climbed to multi-month highs, while Treasury yields rose, setting off a broad “risk-off” move that hit cryptocurrencies alongside equities and precious metals.
On-chain data suggests Bitcoin has broken below a critical technical zone. Analytics firm Glassnode said the token had been consolidating near $83,400, the lower bound of its short-term holder cost basis model. The subsequent breakdown has opened the door to a deeper move toward the “True Market Mean” near $80,700, a level that has now been breached. Despite the decline, Glassnode noted that only about 19.5 per cent of short-term holder supply is currently underwater, well below the 55 per cent threshold typically associated with capitulation, indicating stress but not panic.
Derivatives markets are reinforcing the cautious tone. Funding rates remain muted, signalling limited appetite for leveraged long positions. Options traders have increased demand for downside protection, with dealer positioning turning negative below $90,000 — a dynamic that can amplify volatility if further support levels fail.
Institutional behaviour has also added pressure. Spot Bitcoin exchange-traded funds recorded a single-day net outflow of about $818 million, highlighting that large investors are trimming exposure rather than stepping in to buy the dip. Ethereum’s sharper decline relative to Bitcoin, including a below $2,500, has further raised concerns that risk appetite is deteriorating across the broader crypto complex.
Data from Santiment shows social media sentiment has plunged to extreme bearish levels, a pattern that has historically preceded short-term rebounds. “Excessive negativity has often been a contrarian indicator that a local bottom could be forming,” the analytics firm said, even as network activity remains subdued.
Crypto experts say Bitcoin lacks the volume surge and leverage reset typically seen at durable bottoms. Unless spot demand improves and ETF flows stabilise, prices could continue drifting toward the $74,000–$76,000 support zone. A rebound from those levels is possible, but the balance of risks remains skewed to the downside as liquidity conditions tighten and macro uncertainty intensifies, they say.
-Token's market value has now slipped behind Tesla’s, pushing it to the world’s 12th-largest asset by capitalisation
Bitcoin’s latest selloff has pushed the world’s largest cryptocurrency into its sharpest monthly losing streak in more than a year, underscoring how fragile risk appetite has become across digital assets.
The token fell nearly 8 per cent in Saturday trading to dip below the $80,000 mark, touching levels last seen in April 2025. By midday in New York, Bitcoin was changing hands near $78,160, while the broader market also sank sharply, dragging total crypto market capitalisation below $2.8 trillion.
The selloff has been broad-based. Solana and Dogecoin slid about 13 per cent to around $102.9 and $0.10 respectively, while Ripple dropped roughly 10 per cent to $1.56. Bitcoin’s market value has now slipped behind Tesla’s, pushing it to the world’s 12th-largest asset by capitalisation, according to CoinGecko data. Over the past seven days alone, Bitcoin has lost more than 9 per cent, while the CoinDesk 20 index, a benchmark tracking major tokens, has fallen 12.4 per cent. That slump has driven the widely watched Crypto Fear & Greed Index into “extreme fear” territory.
At the centre of the market shock is a decisive shift in macro expectations. President Donald Trump’s nomination of former Federal Reserve governor Kevin Warsh as the next Fed chair triggered a surge in the US dollar and a sharp repricing of interest rate expectations. Warsh is widely viewed as more hawkish than current chair Jerome Powell, prompting traders to scale back bets on rate cuts in 2026. The Dollar Index climbed to multi-month highs, while Treasury yields rose, setting off a broad “risk-off” move that hit cryptocurrencies alongside equities and precious metals.
On-chain data suggests Bitcoin has broken below a critical technical zone. Analytics firm Glassnode said the token had been consolidating near $83,400, the lower bound of its short-term holder cost basis model. The subsequent breakdown has opened the door to a deeper move toward the “True Market Mean” near $80,700, a level that has now been breached. Despite the decline, Glassnode noted that only about 19.5 per cent of short-term holder supply is currently underwater, well below the 55 per cent threshold typically associated with capitulation, indicating stress but not panic.
Derivatives markets are reinforcing the cautious tone. Funding rates remain muted, signalling limited appetite for leveraged long positions. Options traders have increased demand for downside protection, with dealer positioning turning negative below $90,000 — a dynamic that can amplify volatility if further support levels fail.
Institutional behaviour has also added pressure. Spot Bitcoin exchange-traded funds recorded a single-day net outflow of about $818 million, highlighting that large investors are trimming exposure rather than stepping in to buy the dip. Ethereum’s sharper decline relative to Bitcoin, including a below $2,500, has further raised concerns that risk appetite is deteriorating across the broader crypto complex.
Data from Santiment shows social media sentiment has plunged to extreme bearish levels, a pattern that has historically preceded short-term rebounds. “Excessive negativity has often been a contrarian indicator that a local bottom could be forming,” the analytics firm said, even as network activity remains subdued.
Crypto experts say Bitcoin lacks the volume surge and leverage reset typically seen at durable bottoms. Unless spot demand improves and ETF flows stabilise, prices could continue drifting toward the $74,000–$76,000 support zone. A rebound from those levels is possible, but the balance of risks remains skewed to the downside as liquidity conditions tighten and macro uncertainty intensifies, they say.
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