The bitcoin price has plummeted under the closely-watched $80,000 per bitcoin level, sparking fears that a full-blown bitcoin and crypto crash could be looming.

The price of bitcoin fell about 10% over the past week.

Bitcoin has pushed deeper into bear market territory amid its latest sell-off, with the crypto down 37% from its October all-time high.

“Our worst-case scenario assumes a decline to the $1.8 trillion to $2 trillion range, with an extension to 161.8% of the initial downward momentum in October-November,” Alex Kuptsikevich, FxPro chief market analyst, said in emailed comments.

While no one has fond memories of the 2022 crypto winter — with the price of bitcoin falling 80% — the timeline was relatively brief, roughly one year from the blowoff top to the bottom. From there, bitcoin quickly doubled in price, rose through 2023, and ultimately hit a new record in early 2024.

Marginally good news and big bitcoin purchases have yet to move the cryptocurrency in a meaningfully positive direction.

Bitcoin sees worst crash since November 2024.

Bitcoin ETF flow dispersion widened on Feb. 3 as IBIT took inflows while FBTC and ARKB drove a $272.0 million combined outflow.

Crypto investors are selling their Bitcoin holdings. But why? The post Why is the battered Bitcoin price tumbling again today? appeared first on The Motley Fool Australia.

ETF flows already appear to be flashing warning signs. According to Burry, Bitcoin ETFs have recorded some of their largest single-day outflows since late November, with three occurring in the final 10 days of January. In his view, once losses deepen, forced liquidations could kick in aggressively.