Bitcoin has had a rough start to the week, hanging to just above $80,000 on March 10. BitMEX co-founder Arthur Hayes warns that BTC could soon retest $78,000, and if that level fails, $75,000 will be the next target. He pointed out that a massive amount of Bitcoin options open interest is concentrated between $70,000 and $75,000, meaning that if BTC enters this range, volatility could rise, triggering fear of more liquidations.
Billions Lost as Bitcoin Falls
The market crash has already wiped out over $5 billion in bullish bets, mostly long positions in just four days. Bitcoin is now down nearly 30% from its January highs, and traders are worried because the price has fallen below the 200-day moving average, a key signal that often predicts more losses. Many had hoped that the BTC Strategic Reserve, a new initiative, would boost confidence, but it hasn’t helped. At the same time, big investors are pulling money out of Bitcoin ETFs at record levels, showing that institutional demand is drying up.
A ‘Textbook Correction’ in Progress
According to 10x Research, this drop is a “textbook correction”, meaning it’s a natural pullback after a big rally. Analysts noted that 70% of sellers are recent investors who bought Bitcoin within the last three months and are now panic-selling. Over the past few weeks, Bitcoin has been bouncing between $80,000 and $95,000, reacting to economic and regulatory news.
Moreover, investor sentiments are fading, with the Bitcoin Fear & Greed Index dropping to extreme fear at a reading of 20. Meanwhile, trading volume has fallen, meaning fewer people are buying in at current prices. Adding to the woes, El Salvador, one of Bitcoin’s biggest supporters, has reportedly halted its Bitcoin-related projects, further weakening the market’s outlook.
Brace For Upcoming Events
The volatility may continue this week as two key U.S. inflation reports are due, which could influence the Federal Reserve’s monetary policy. If inflation remains high, the Fed may maintain its restrictive stance, adding pressure to risk assets like Bitcoin. On the geopolitical front, Canada has responded to recent U.S. trade tariffs with retaliatory measures, further unsettling global markets.
What’s Next for Bitcoin?
Crypto analyst Jacob King also highlights Bitcoin’s sharp drop below $80,000, wiping out over $5 billion in long positions within four days. BTC is now down nearly 30% from its January highs, with its price slipping below the 200-day moving average—a bearish signal.
The much-anticipated BTC Strategic Reserve failed to ignite bullish momentum, while institutional interest is fading, as seen in record ETF outflows. Bitcoin’s ability to hold the $80,000 support level will be crucial in determining its next move. If prices stabilize, a recovery could follow, but if BTC breaks below key support levels, a further drop toward $70,000 is possible. With weakening institutional demand, rising liquidations, and tariff war, traders are bracing for more volatility in the days ahead.
