Americas Crypto Market Outlook: Red Dominates as Bitcoin Plummets to $80,000

By Omkar Godbole (Times are ET unless stated otherwise) The cryptocurrency market is experiencing a significant downturn, with bitcoin hitting three-month lows below $88,000 and the CoinDesk 20 Index declining over 10% in the past 24 hours. Several factors are contributing to this decline, including a risk-off attitude in traditional markets and the influence of memecoins, particularly the recent activity surrounding TRUMP and LIBRA. As discussed on Monday, attendees at the Consensus Hong Kong conference last week expressed concerns that the memecoin frenzy had diverted liquidity from productive crypto sub-sectors, making the broader market more vulnerable. Another factor is the lack of action from President Donald Trump, who made significant promises before the elections but has yet to deliver concrete results. The anticipated strategic BTC reserve has not materialized, and even state-level reserves are proving difficult to implement. According to Petr Kozyakov, co-founder and CEO of Mercuryo, "The industry is still waiting for tangible measures, such as a proposed Bitcoin Strategic Reserve, to be implemented. In the meantime, sentiment has been severely impacted by the largest hack in Bybit exchange history, resulting in the leak of 401,000 ETH, and a memecoin sector plagued by high-profile pump and dump schemes." Additionally, renewed concerns about the US economy are reducing demand for riskier assets. Nansen's principal research analyst, Aurelie Barthere, noted, "There are concerns about the slowdown in US growth since the release of the US Services PMI last week, which was the lowest in 22 months and consistent with a GDP growth rate of only 0.6%. Our Nansen Risk Barometer has also shifted from Neutral to Risk-off today." These factors have led to BTC falling out of its two-month range between $90,000 and $110,000. According to technical analysis, it could potentially drop to $70,000, although the maximum open interest in BTC put options on Deribit is at the $80,000 strike, which may provide some support. What could help stabilize prices? Perhaps an announcement from Trump regarding a strategic reserve or a significant reversal in the Nasdaq 100. However, the index has fallen below its 50-day SMA, while the yen continues to strengthen against G7 currencies, including the dollar, indicating risk aversion. The next major catalysts for risk assets are Nvidia's earnings on February 26 and core PCE inflation on February 28. Stay informed. Key Events to Watch Upcoming Conferences: Token Talk By Shaurya Malwa Derivatives Positioning Market Trends: Bitcoin Statistics: Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs: Spot ETH ETFs Source: Farside Investors Overnight Market Movements Chart of the Day While You Were Sleeping Ether Insights