Bitcoin's Sharp Decline Revealed Breakdowns in the Crypto Market

In recent days, Bitcoin has fallen to around $77,000, resulting in a loss of approximately $800 billion in market value compared to its peak in October. This decline has removed Bitcoin from the top 10 global assets, and a severe wave of selling was observed along with the liquidation of leveraged long positions.

Additionally, rising tensions between the United States and Iran, coupled with Kevin Warsh's candidacy for the Federal Reserve chairmanship, have led to a rising dollar and mandatory liquidations, resulting in a comprehensive sell-off in cryptocurrencies, gold, silver, and U.S. stock futures.

As small investors panic and begin selling, large mega-whales are quietly buying. Experts warn that the current drop could resemble the 2022 crypto winter, and could deepen further if speculative excess is completely eliminated.