~11 March 2025. The biggest cryptocurrency by market capitalization, Bitcoin, has dropped below $80,000. This decrease represents a significant 27% drop “from” its all-time high, and it is causing chaos across the entire digital asset market.
The recent decline is not just specific to Bitcoin, as the entire cryptocurrency as well as stock markets are experiencing a phenomenon of “panic selling.” Reportedly, analysts suggest that the drop is greater than $6 trillion cumulatively across two asset classes, leaving investors and outlook experts deeply worried.
Disorientation in the Market and Global Economic Factors
Bitcoin’s sudden depreciation coincides with rising global economic uncertainties such as the interest rate increase by centralized banks, increased scrutiny, and fears of recession. Instability in the U.S. Federal Reserve’s monetary policies has been leading towards increased volatility in the markets, forcing most institutional or retail investors to sell out their positions.
In addition to this, increasing scrutiny from major economies such as the EU and the US due to geopolitical discord and apprehensions regarding the shifting rules have enforced weightage upon the cryptocurrency market. While Bitcoin is dropping, its other counterparts with lower market capitalization – Ethereum, Binance Coin, and Solana have endured.
