BTC USD price drops to $77,000: Why is Bitcoin crashing today? Inside the key forces driving the crypto's sudden bearish turn

Bitcoin BTC USD price crash today: Bitcoin (BTC USD) extended its sell-off on Monday and trading near $77,000, as heavy liquidations and worsening risk sentiment weighed on digital assets. The move pushed the world’s largest cryptocurrency to its lowest level since last April and marked a fourth consecutive month of losses.

BTC USD crash: Bitcoin price today falls near $77,000 amid heavy selling

The decline accelerated over the weekend amid thin trading conditions, with analysts pointing to excessive leverage and a rapid unwind of long positions. According to CoinSwitch Markets Desk, risk appetite deteriorated after reports of an explosion at Iran’s Bandar Abbas port, prompting investors to move away from risk assets.

BTC USD price drop reason: Crypto market sell-off deepens as liquidations accelerate

CoinSwitch Markets Desk told The Economic Times that when Bitcoin slipped below the $80,000 psychological level, heavily leveraged longs were forced to unwind, triggering a liquidation cascade that wiped out nearly $1 billion in positions within minutes. Shallow order books caused prices to gap lower rather than fall gradually.


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Fed chair uncertainty weighs on risk assets and crypto

Broader macro concerns also pressured the market. The latest drop followed US president Donald Trump’s announcement on Friday that Kevin Warsh will be nominated to lead the Federal Reserve when Jerome Powell’s term ends in May. Markets view Warsh as hawkish, adding to concerns about tighter financial conditions and liquidity. Digital assets weakened alongside gold and other precious metals, which also fell sharply on Friday and continued to slide into Monday.

Why Bitcoin price USD is down today

According to 10X Research, Bitcoin is approaching a key support level near $73,000, with flow and positioning data showing a meaningful shift in sentiment, as per Yahoo Finance. The firm said investors remain focused on deleveraging and unwinding positions rather than positioning for a snapback rally, noting that the broader downtrend remains intact without a clear catalyst.

Ryan Lee, Chief Analyst at Bitget, told The Economic Times that, "The recent drawdown in Bitcoin below $75,000 and Ethereum under $2,200, is primarily driven by ongoing negative sentiments in the crypto space followed by the pullbacks in gold and precious metals as a classic correction. The ongoing uncertainty from the new Fed chair, and broader macro liquidity concerns, marks this as a deleveraging event amplified by a macro shock rather than a structural shift."

Bitcoin is now down more than 12% year to date, while ether (ETH-USD) has fallen about 23% since the start of the year. Altogether, cryptocurrencies have lost roughly $1.7 trillion in market value, or about 39% from last year’s peak, according to 10X Research.

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Ethereum drops below $2,200 as altcoins weaken broadly

CoinDCX Research Team pointed out that the crypto market sentiment has plunged into extreme fear after Bitcoin posted a bearish monthly close below $77,000. Ethereum traded near $2,200, while BNB fell below $800, Solana hovered near $100, Dogecoin slipped to around $0.103, and Cardano dropped below $0.29. CoinDCX Research Team told The Economic Times, "Nearly $230 billion has been wiped out from the markets today as it records the 10th largest single-day liquidation event in history of over $5 billion. Besides, Ethereum recorded $587.2 million in stablecoin outflows."

BTC USD price prediction: Analysts see Bitcoin trading between $70,000 and $80,000

However, Lee predicted that, "For Bitcoin, I anticipate short-term oscillations between $70,000-$80,000 with potential downside spikes due to thin liquidity, while Ethereum may range widely from $1,800-$2,600. Stabilization could be confirmed by a rebound in the Fear & Greed Index above 40 and reduced liquidation volumes, whereas further downside might be signalled by persistent outflows from spot ETFs," as per an emailed statement to The Economic Times.

FAQs

Why did Bitcoin fall to $77,000 today?
Bitcoin fell due to heavy liquidations, thin liquidity, and worsening risk sentiment across global markets.

How has Ethereum performed during this sell-off?
Ethereum fell below $2,200 and is down about 23% year to date.