Bitcoin plunges 20% from peak, hits $83,000 mark
What's the story
Bitcoin, the world's largest cryptocurrency, has taken a major hit, falling over 5% to hit an intra-day low of $83,740 on Thursday. The downward trend marks a nearly 20% fall from its record high since January. The decline is attributed to several factors including Donald Trump's aggressive stance toward allies and geopolitical rivals since his inauguration in January.
Contributing factors
Market instability and record-breaking hack impact Bitcoin
The cryptocurrency market has been facing intense selling pressure, further compounded by high inflation fears. A record-breaking $1.5 billion hack of the ByBit exchange last week has also added to the market volatility. Bitcoin's value continued to decline for the fourth consecutive day, falling around 5.6% to $83,744. This marks a decline of about 13% over the period, the largest four-day slump since August 2024.
Market impact
Other cryptocurrencies also experience significant drops
The effect of Bitcoin's fall isn't just confined to the top cryptocurrency. Other coins like Ether and Solana have also been heavily impacted, with both witnessing a fall of 7% and 10%, respectively. Experts believe ETF outflows and Trump's EU tariff threats could even bring Bitcoin down to $74,000.
Expert analysis
Crypto market enters bear phase
Avinash Shekhar, co-Founder and CEO of Pi42, said the crypto market has entered a bear phase with Bitcoin falling over 20% from its January peak of $109,350 to an intra-day low of $83,740. "Bitcoin's decline below $85K is the largest sell-off of 2025, with 79.3K BTC sold at a loss in 24 hours," he said. He also noted a $300 billion flash crash in the crypto market as an indicator of rising volatility and investor anxiety.
Market outlook
Uncertainty looms over altcoins and institutional selling
Shekhar also observed that XRP's open interest has reached its lowest in 2025, indicative of wider uncertainty in altcoins. He highlighted that institutional selling and macroeconomic instability have rattled confidence, leaving many to wonder if the crypto market is facing a temporary correction or the beginning of a deeper downturn. "While Bitcoin's dominance is rising, suggesting some long-term faith remains, the increasing frequency of flash crashes and aggressive liquidations indicates a fragile market," he added.