Bitcoin Dips Below $80K: Rebound Expected, Says Expert

• Bitcoin drops to $79,000, marking an 8.5% decline in 24 hours.
• Ethereum falls over 10%, mirroring Bitcoin’s sharp decline in the market.
• Extreme fear at 21 signals market low, hinting at potential recovery soon

The cryptocurrency market is seeing a major pullback today, with Bitcoin, the world’s largest cryptocurrency, falling below $80,000 for the first time since November 2024. 

This marks a major decline, erasing nearly all the gains Bitcoin made after Pro-crypto President Donald Trump took office. Currently trading at about $79,000, Bitcoin is down 8.5% in the past 24 hours. Ethereum (ETH) has also taken a hit, dropping over 10% in the same period. 

Several pieces of negative news have impacted the market, including the Bybit hack, which sent shockwaves through the crypto community. Additionally, broader market uncertainty, including geopolitical tensions and trade issues like the Trump administration’s reintroduction of tariffs on Canada and Mexico, have contributed to the market’s instability.

Market Sentiment and Potential Rebound

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, discussed the current state of the Bitcoin market and spoke about the ongoing volatility. 

In an interview with Scott Melker, he recalled key moments of panic in the past, such as the dramatic drop in Bitcoin’s price in July 2024 when it fell from $72,000 to around $55,000. Despite widespread fears at the time, Bitcoin’s price didn’t crash further but instead surged to $100,000.

Related: Analyst: Current Crypto Market Correction is Within Historical Norms

Hougan said that there’s a similar sense of fear in the market now, with concerns about the broader economy, including challenges faced by traditional stocks. However, he suggested that if earnings reports from major stocks come in better than expected, it could signal that Bitcoin’s market is bottoming out.

Fear and Greed Index and Options Expiration 

The Fear and Greed Index, another tool for gauging market sentiment, currently sits at 21, indicating extreme fear. This level mirrors the lows seen last September and August, potentially signaling that the market is due for a rebound. With options expiration approaching, he speculated that the market could see positive momentum, especially by next week.

Related: Crypto Whale’s $200K Mistake: Sells KAITO, Misses 284% Surge

Despite the short-term fears, Hougan said that the long-term outlook for Bitcoin remains strong. Institutions continue to buy, and influential figures like Michael Saylor are still investing in Bitcoin. 

Governments are also increasingly looking at Bitcoin as a serious asset. The short-term news may be negative, but the fundamentals of Bitcoin remain unchanged, Hougan concluded.