Market Overview - Bitcoin was trading at $77,494.65, having fallen as low as $74,876, marking a decline of about 12% over the last seven days, which equates to a loss of more than $200 billion in market value [1] - This decline represents Bitcoin falling below $80,000 for the first time since April 2025 [1] Market Dynamics - The recent drawdown in Bitcoin's price coincided with a broader risk-off sentiment across global markets, influenced by thin weekend liquidity rather than specific crypto developments [2] - U.S. stocks, particularly in the tech sector, experienced declines, with Microsoft shares dropping 10% following disappointing earnings, which contributed to the negative sentiment [2] Global Impact - The negativity from the U.S. market extended to European and Asian stock markets, with gold and silver also experiencing losses [3] - Silver saw a significant drop of 30%, marking its worst day since March 1980 [3] Liquidation Effects - Bitcoin's price decline was exacerbated by forced liquidations, with over $2 billion in long and short positions liquidated since Thursday [3][4] - Liquidations can create a cascading effect in crypto markets, leading to rapid price declines as traders' positions are closed [4] Investor Sentiment - Digital asset investment products recorded outflows totaling $1.7 billion for the second consecutive week, with year-to-date outflows reaching $1 billion, indicating a deterioration in investor sentiment towards cryptocurrencies [5] - Analysts suggest that the recent selloff in Bitcoin is driven by rising geopolitical risks, declines in tech equities, and a breakdown in precious metals, which have been considered safe-haven assets [6]