Bitcoin slides below $80,000 as risk appetite fades
The cryptocurrency’s sharp retreat from last year’s record high highlights a rapid shift in market sentiment, as tighter interest rate expectations and sustained institutional outflows drain momentum from speculative assets.
Bitcoin’s slide below $80,000 marks a decisive reversal from the exuberance that characterised last year’s surge in digital asset prices.
The token was trading close to $78,000 on Sunday, well below its October 2025 peak of about $126,000, underlining the scale of the retreat.
This correction reflects a broader reassessment of assets that benefited from loose financial conditions and a willingness among investors to embrace risk.
The shift in sentiment has been driven largely by the macroeconomic outlook in the United States, where expectations for prolonged higher interest rates have hardened.
As borrowing costs remain elevated and liquidity conditions tighten, speculative investments have fallen out of favour across global markets.
Bitcoin has once again shown a close correlation with technology stocks, reinforcing its sensitivity to changes in monetary expectations rather than any decoupling from traditional risk assets.
Selling pressure has been amplified by institutional flows, with United States spot Bitcoin exchange-traded funds recording persistent outflows since the start of the year.
Those vehicles were central to the rally during 2024 and 2025, and their reversal has removed a significant source of incremental demand.
The downturn gathered pace after prices fell through $80,000, a threshold widely regarded by traders as a key psychological support level.
That breach prompted the liquidation of leveraged positions, accelerating losses and deepening short-term volatility.
While proponents continue to argue that Bitcoin’s longer-term case remains intact, recent price action suggests its near-term direction is tied closely to interest rate expectations and broader market confidence.
