Cryptocurrency markets tumbled Friday, with Bitcoin falling to a seven-month low of $80,553, approaching a key technical level that analysts warn could trigger steeper losses. Ether also dropped to a four-month low as digital assets led a wider retreat from riskier investments.
The selloff reflects growing investor caution over high valuations in the tech sector and uncertainty surrounding near-term U.S. interest rate policy. Over the past six weeks, cryptocurrencies have collectively lost roughly $1.2 trillion, according to CoinGecko.
Cryptocurrency-focused exchange-traded funds also slid, extending declines across both retail and institutional markets. Market watchers say Bitcoin’s approach to the $80,000 threshold is closely watched, as breaking below it could signal a further downturn for the world’s largest cryptocurrency.
“Investors are retrenching to safer assets amid rising macroeconomic concerns,” one analyst said. “Bitcoin is on thin ice, and a sustained breach of $80,000 could accelerate the flight from risk.”
The declines underscore the volatility that has long characterized the crypto market, even as adoption and trading volumes remain significant. Analysts caution that near-term recovery may hinge on broader investor sentiment and clarity on U.S. monetary policy.
