Bitcoin dropped below 80000 dollars this Saturday, dragging the rest of the crypto market down with it. Geopolitical concerns in the Middle East accelerated a movement already driven by liqui
Bitcoin dropped below 80000 dollars this Saturday, dragging the rest of the crypto market down with it. Geopolitical concerns in the Middle East accelerated a movement already driven by liquidations, the retreat of institutional investors, and weak liquidity during the weekend.
Bitcoin touched about 79750 dollars, its lowest level in nine days. It had approached 85000 dollars on Wednesday before losing more than 5000 dollars in a few sessions. This new dip below 80000 dollars is the second observed within about ten days.
Start your crypto adventure safely with KrakenThis link uses an affiliate program.The main altcoins followed the move. Ether fell below 2350 dollars, while XRP extended its decline below 1.30 dollars. Solana dropped below 100 dollars for the first time since early September.
Available data at the time of the drop allows measuring the scope of the movement :
Less capitalized assets recorded even heavier losses. NEAR notably gave up more than 10%, while Zcash fell about 7.5%. This difference illustrates a frequent mechanism: when investors reduce risk exposure, altcoins usually suffer more than bitcoin.
The decline intensified after the announcement of new U.S. security measures in the Middle East. The State Department ordered the departure of non-essential government employees and their families in Saudi Arabia. Several other embassies in the region also reduced their staff without receiving a general evacuation order.
This decision comes after a multiplication of attacks by the Houthis, supported by Iran, against Saudi civilian and energy infrastructure. U.S. officials also mentioned Iranian plans targeting U.S. citizens, which have reached an advanced stage.
State Department spokesperson Tommy Pigott stated that the Houthis intensified their attacks against civil airports and critical infrastructure. U.S. authorities now fear an extension of the conflict, which could further disrupt maritime transport and energy supply.
The Brent price thus reached about 117 dollars on Friday. A sustained rise in oil could fuel inflation and reduce the Federal Reserve’s maneuvering room. This scenario penalizes cryptocurrencies since high rates make bonds and interest-bearing investments more attractive compared to yield-free assets.
However, geopolitics alone does not explain bitcoin falling below 80000 dollars. The market was already affected by rising bond yields, a strong dollar, and capital outflows in U.S. Bitcoin ETFs. Weekend announcements mainly acted as a catalyst for an already fragile structure.
Leverage turned this decline into a more brutal movement. A liquidation occurs when a platform automatically closes a trader’s position whose collateral no longer covers losses. In the case of a long position, this closure causes an additional sale on an already bearish market.
Nearly 670 million dollars of crypto positions were liquidated in 24 hours. Over 200 million disappeared during the fastest phase of the decline, with a clear majority of bullish bets.
The weekend period increases this risk. Volumes are often lower than on weekdays and traditional financial markets are closed. A large sell order can then cause a disproportionate variation, reach several liquidation thresholds, and trigger a chain reaction.
The 80000 dollars level is now the first zone to reconquer. A sustained return above this threshold would reduce immediate pressure, but the zone between 84000 and 85000 dollars remains significant resistance. Conversely, a new acceleration below 79000 dollars would expose the market to long positions still concentrated around 78500 dollars.
Oil price evolution, U.S. decisions in the Middle East, and ETF flows will provide the next signals. As long as these three factors remain unfavorable, a bitcoin rebound could remain fragile.
