Bitcoin plunges to $80k amid ongoing volatility 

At the time of writing, Bitcoin is trading at approximately $82,200.

The overall cryptocurrency market experienced a 7% drop, reducing its valuation to $2.77 trillion.

Solana and XRP both recorded 7% losses, while Ethereum fell 8%, trading near the $2,000 mark. Despite the downturn, Bitcoin’s dominance remains steady at 58.2%.

The market’s decline has triggered significant liquidations, with Coinglass data reporting $616 million in liquidations over the past 24 hours, according to crypto.news price tracker.

Long positions bore the brunt of the losses, amounting to $540.49 million, with Bitcoin alone accounting for $231 million in liquidations.

Some investors have drawn parallels between the current economic climate and the anti-inflation policies of former Federal Reserve Chairman Paul Volcker in the 1980s. While Volcker’s measures ultimately stabilized inflation and spurred long-term growth, they initially caused significant market instability.

Arthur Hayes, co-founder of BitMEX, has warned that Bitcoin could face further declines, potentially retesting the $78,000 level. “Many Bitcoin options are priced between $70,000 and $75,000, which could lead to additional volatility if prices enter that range,” Hayes cautioned.

Traders are now closely monitoring key economic reports, including the U.S. Consumer Price Index on March 12 and the Producer Price Index on March 13, which could influence Bitcoin’s next moves.

During the launch of Trump Coin, Dan Hughes, founder of the decentralized finance platform Radix, observed a significant shift in liquidity. “Most of the inbound liquidity was outflow from other crypto assets, with people selling their crypto portfolios to buy TRUMP in extreme FOMO [fear of missing out],” Hughes told Cointelegraph.

In February, Solana experienced outflows exceeding $485 million, with investor capital primarily shifting to Ethereum, Arbitrum, and the BNB Chain. According to a Binance Research report shared with Cointelegraph, this capital exodus reflects a broader flight to “safety” among crypto market participants.