Bitcoin Slides Below $80K, Worst Weekly Loss Since FTX Crash

Bitcoin’s brutal selloff continued Friday, briefly dipping below $80,000 as market jitters and trade tensions fueled further risk aversion. The digital asset recovered slightly to $81,539.64, down 1.9% on the day, after hitting an overnight low of $78,226.23. 

With a 14% drop for the week, Bitcoin is heading for its worst seven-day stretch since November 2022, when the FTX collapse shook the crypto market to its core. The month isn’t looking much better, as Bitcoin is heading for its steepest monthly decline since June 2022.  

Negative sentiment has put pressure on Bitcoin, pushing it more than 25% below its all-time high from January. Uncertainty around global markets, President Donald Trump’s aggressive tariff stance, and ongoing geopolitical tensions in Ukraine and Gaza have spooked investors. 

The selloff has triggered $415 million worth of liquidations in the past 24 hours alone, forcing traders to dump holdings at market price and accelerating Bitcoin’s decline. Meanwhile, Bitcoin ETFs are experiencing record outflows, shedding $2.7 billion as of Thursday’s close.  

Adding to the turmoil, Bybit, a major crypto exchange, was hit with a $1.5 billion hack—the largest crypto heist to date—further denting confidence. 

What Does This Mean for Me?

Despite the chaos, some traders see potential for a rebound. Bitcoin’s Relative Strength Index (RSI) has plunged to 25, signaling oversold conditions that could set the stage for a March recovery. Still, the risk of deeper losses looms, with some analysts eyeing a possible drop to $70,000 before Bitcoin regains footing