Crypto Shock: Bitcoin Sinks Under $84K Amid $115B Market Wipeout

Bitcoin Plunges Below $84K Amid $115 Billion Sell-Off

On Friday, the cryptocurrency market experienced a sharp downturn, erasing gains from earlier in the week. Bitcoin (BTC) fell to $83,800, marking a 3.8% drop in 24 hours, while the CoinDesk 20 Index declined by 5.7%. Altcoins such as Avalanche (AVAX), Polygon (POL), Near (NEAR), and Uniswap (UNI) suffered losses of nearly 10% during the same period. The sell-off wiped out $115 billion in total market value, according to TradingView data.

Ethereum (ETH) also faced significant pressure, declining over 6% and hitting its weakest price relative to Bitcoin since May 2020. Spot ETH exchange-traded funds (ETFs) have failed to attract net inflows since early March, while Bitcoin ETFs saw over $1 billion in inflows during the past two weeks, as reported by Farside Investors.

The downturn coincided with a sell-off in U.S. equities, with the S&P 500 and Nasdaq falling 2% and 2.8%, respectively. Crypto-focused stocks like MicroStrategy (MSTR) and Coinbase (COIN) also suffered, dropping 10% and 7.7%, respectively. Analysts suggest that Bitcoin's drop may have been influenced by filling a CME futures gap between $84,000 and $85,000, a pattern observed in previous market movements.

"Any additional setbacks that we might see should be exceptionally well supported into the $70-75k area," noted Joel Kruger, market strategist at LMAX Group.

Key Takeaways:

Bitcoin dropped to $83,800, erasing weekly gains.
The crypto market lost $115 billion in value.
Ethereum hit its weakest price against Bitcoin since 2020.

Ethereum and Bitcoin Face $14 Billion Options Expiry

Friday marked a critical day for the cryptocurrency market as $14 billion worth of Bitcoin and Ethereum options expired. According to Greeks.live, 139,000 Bitcoin options worth $12.1 billion and 301,000 Ethereum options worth $2.13 billion reached their expiration. The put-call ratios stood at 0.49 for Bitcoin and 0.39 for Ethereum, reflecting varying trader sentiment.

The "max pain" points, or levels where the most options expire worthless, were $85,000 for Bitcoin and $2,400 for Ethereum. Analysts suggest that these technical levels may have contributed to Bitcoin's recent drop. Additionally, external factors such as uncertainty over U.S. tariffs have added complexity to market dynamics.

Looking ahead, analysts warn of potential selling pressure in the cryptocurrency market, with challenges anticipated in the second quarter of 2025. Without new catalysts, the market may face increased volatility in the coming weeks.

Key Takeaways:

$14 billion in Bitcoin and Ethereum options expired on Friday.
Max pain points were $85,000 for Bitcoin and $2,400 for Ethereum.
Market volatility is expected to persist in the near term.

Shares of cryptocurrency-related companies fell sharply on Friday, mirroring Bitcoin's decline. MicroStrategy (MSTR), the largest corporate holder of Bitcoin, saw its stock drop by 10%, while Coinbase (COIN) fell by 7%. Bitcoin itself slid about 4% to $83,700, with Ethereum and other cryptocurrencies also losing ground.

The broader market also faced headwinds, with inflation and consumer sentiment data raising concerns about the U.S. economy. The February PCE inflation report showed a 2.5% year-over-year increase, with core inflation at 2.8%, slightly above expectations. Consumer spending rose modestly by 0.4%, but inflation-adjusted figures indicated minimal growth.

Key Takeaways: