Nearly all cryptocurrency investors faced a brutal wake-up call as Bitcoin plummeted to $79,170 on March 11, 2025. The flagship cryptocurrency tumbled a staggering 16% from its recent high of $94,000, marking its lowest price point since November 2024. So much for diamond hands.
Bitcoin’s plunge to $79,170 delivered a brutal reality check for crypto bulls. Diamond hands? Not anymore.
The broader crypto market didn’t fare any better. A jaw-dropping $700 billion evaporated from the total market cap in just one week. Ethereum briefly dipped below $1,800, while altcoins took an absolute beating – Solana down 39%, Dogecoin tanking 33.7%, and Cardano dropping 23.8%. XRP holders watched in horror as their tokens shed 19.2% of value. This dramatic sell-off impacted the total cryptocurrency market, pushing its capitalization below $2.5 trillion.
What sparked this massive sell-off? Trump’s comments about economic disruption certainly didn’t help. His aggressive tariff threats sent investors scrambling for exits. The lack of promised pro-crypto regulatory action left many feeling betrayed.
Add in fears of a looming recession and weak performance across traditional equity markets, and you’ve got a perfect storm for panic. Proof of Stake cryptocurrencies appeared slightly more resilient than their Proof of Work counterparts, likely due to their reduced operational costs during market downturns.
The Crypto Fear & Greed Index hit 21 – its lowest reading in three years. Short-term holders collectively lost $2.16 billion as they rushed to sell. Significant increases in Bitcoin exchange inflows were reported by Binance, indicating heightened sell-side pressure across the market. The market saw $3 billion in liquidations, the largest wipeout since the FTX collapse. Institutional players weren’t immune either, withdrawing $4.75 billion over four weeks.
Technical indicators paint a grim picture. Bitcoin crashed through the critical $82,000 support level and breached its 200-day moving average. BlackRock’s Bitcoin ETF reported outflows for three consecutive days, while Coinbase stock tanked more than 10%.
Some eternal optimists still predict a rebound to $92,000 this month. Others see Bitcoin potentially dropping to $70,000-$75,000 before finding solid footing. Long-term forecasts remain bullish with a $250,000 end-of-year target, though short-term volatility seems inevitable.
For now, the $71,000 level is what traders are watching. Break that, and well… let’s just say it could get uglier.
