Bitcoin crashes to $80k as Ether tumbles below $2k. How low can prices get?
The post Bitcoin crashes to $80k as Ether tumbles below $2k. How low can prices get? appeared on BitcoinEthereumNews.com.
Bitcoin just collapsed to $80,000, wiping out over $200 billion from the crypto market in one of the worst single-day crashes over the past year, according to data from CoinGecko. Ether also crashed, tumbling below $2,000 to trade at $1,992, a level we haven’t seen in over six months. The sudden sell-off came after Donald Trump signed an Executive Order on Thursday, officially launching the Strategic Bitcoin Reserve—a decision you’d expect would boost prices, not tank them. Source: Jai Hamid/TradingView Friday’s White House Crypto Summit was set to be the big event, but Trump threw a curveball by announcing the reserve ahead of schedule. Traders were betting on a bullish rally, but instead, Bitcoin dropped from $90,000 to $85,000 within minutes of the announcement. The market reaction was brutal, with options traders unwinding long positions, volatility spiking, and put contracts gaining demand as traders scrambled to hedge against deeper downsides, per data from Coinglass. Trump’s Bitcoin Reserve triggers sell-off instead of rally The Executive Order confirms the US government’s plan to stockpile Bitcoin, but there’s a catch—there’s no new funding for purchases yet. The initial reserves will be built using Bitcoin seized from criminal or civil asset forfeitures, which means no immediate demand pressure. Scott Bessent, the Treasury Secretary, and Howard Lutnick, the Commerce Secretary, have been given the job of figuring out “budget-neutral” ways to add more Bitcoin to the reserve without costing taxpayers a dime. That wasn’t what traders wanted to hear. The market was looking for aggressive government buying, not just a relabeling of old holdings. With no sign of new demand, the sell-off gained momentum. As trading company QCP explained in its Friday Telegram note, risk reversals in the crypto market flipped, meaning traders started pricing in more downside risk than upside potential, which only made…
Filed under: News - @ March 10, 2025 12:10 am