The cryptocurrency market is facing another brutal downturn, with Bitcoin (BTC) plunging below $80,000 and Ether (ETH) dropping to a 16-month low near $1,800 as a wave of selling pressure grips digital assets.

Market Turmoil: BTC, ETH Lead the Drop

Bitcoin fell to as low as $77,000 before recovering slightly to $78,250 at the time of writing. The world’s largest cryptocurrency is down nearly 12% in the past 24 hours, as investors react to macroeconomic concerns and heightened regulatory scrutiny.

Ether, the second-largest cryptocurrency by market cap, also saw a sharp decline, hitting a 16-month low of $1,800. ETH has lost over 10% in the last 24 hours, extending a downward trend that has wiped billions from its market valuation.

Altcoins in Freefall

The broader market sell-off has significantly impacted major altcoins:

• Dogecoin (DOGE) plunged 11.5%
• XRP slid 10.2%
• Cardano (ADA) tumbled 10.8%

The total cryptocurrency market capitalization has dropped by over $250 billion in the past 48 hours, signaling a sharp shift in investor sentiment.

What’s Driving the Sell-Off?

Several factors are contributing to the downturn:

• Macroeconomic Uncertainty — Rising interest rates and economic instability continue to weigh on risk assets, including cryptocurrencies.
• Regulatory Pressures — The SEC and other global regulators have increased scrutiny on exchanges and token issuers, leading to market uncertainty.
• Large Liquidations — Over $1.2 billion in crypto futures positions have been liquidated in the past day, further accelerating the price drop.

Will the Market Recover?

Despite the sharp declines, some analysts remain optimistic. Historically, Bitcoin has seen multiple corrections before rebounding to new highs. If market conditions stabilize, BTC and ETH could regain some lost ground. However, traders are bracing for further volatility in the short term.

As the crypto market navigates this downturn, all eyes will be on institutional movements, regulatory developments, and macroeconomic trends to determine the next direction.