In a dramatic turn of events, Bitcoin has plummeted below the $87,000 mark, marking a significant downturn in the cryptocurrency market. This sharp decline has sent shockwaves across the digital asset landscape, with other major cryptocurrencies like Ethereum, Solana, and Ripple’s XRP also experiencing substantial losses.
As of the latest data, Bitcoin’s price has dropped to as low as $86,887, its lowest level since mid-November. This downturn is attributed to a combination of factors, including a major security breach at a prominent exchange, significant outflows from US Bitcoin exchange-traded funds (ETFs), and broader market sentiment shifts.
The Crypto Fear & Greed Index has plummeted to a score of 25, indicating “extreme fear” among investors, marking one of the sharpest drops in sentiment since September. Additionally, liquidations have surged to $1.48 billion over the past 24 hours, with Ethereum and Bitcoin leading the charge.
The broader crypto market has seen a decline of over 10% in the past day, with some leading coins experiencing even larger losses. Ripple’s XRP, for instance, has fallen by 15.6% over the last day and 19.7% on the week. This widespread sell-off reflects a bearish turn in investor sentiment, compounded by external economic factors such as the strengthening of major currencies, which has sparked risk-off fears in global markets.
