Bitcoin Plunges Toward $77K as Market Faces “Extreme Fear” Across Crypto and Beyond
A comment on social media may have sparked conversation, but the broader market reaction has been anything but trivial. Bitcoin plunged to nearly $77,000 on Saturday, a level it has held over the weekend, rattling investors across the crypto ecosystem.
The largest digital asset didn’t merely stumble—it broke through the $80,000 floor, reaching prices unseen since the so-called “tariff tantrums” of April 2025. By Saturday afternoon, amid thin weekend liquidity, bitcoin’s market capitalization had shrunk by an eye-watering $800 billion from its October peak above $126,000. Leveraged long positions alone saw roughly $2.5 billion liquidated in just 24 hours.
The selloff has pushed bitcoin out of the global top 10 assets, leaving it behind corporate giants like Tesla and Saudi Aramco. Social media channels are flooded with panic, and losses aren’t limited to crypto: tech stocks, precious metals, and other asset classes are also feeling the strain.
For those wondering why the “digital gold” narrative has gone quiet, three major forces are driving the market into a state of Extreme Fear.
1. Geopolitical Shock Freezes Risk Appetite
The immediate catalyst was a literal explosion: reports of potential military escalation between the U.S. and Iran sent risk appetite plummeting. As has become familiar, traders did not treat bitcoin as a safe haven; they used it as a liquidity source.
During times of geopolitical uncertainty, investors typically flee to the U.S. dollar. Bitcoin, operating 24/7, often acts as the first responder to global panic. On Saturday, it was sold off to cover losses amid low weekend liquidity—a market that has yet to fully recover since the October 10 crash, widely blamed on Binance.
2. Hard Assets Under Siege
Bitcoin wasn’t the only casualty. The broader “store of value” trade also faltered: gold fell 9% in a single session to just under $4,900, while silver suffered a historic 26% drop to $85.30.
Analysts attribute this to a surge in the U.S. dollar, fueled by Kevin Warsh’s nomination to lead the Federal Reserve, making dollar-priced metals expensive for international buyers. A massive “de-risking” occurred across all hard assets.
Early Sunday trades show some recovery: gold rose 1% to around $4,730, silver gained 3% to near $81.
3. The Liquidation Domino
This geopolitical shock struck a market already bruised by shifting political dynamics in Washington. Falling prices triggered massive automatic liquidations: according to Coinglass, over $850 million in long positions were wiped out within hours, eventually totaling nearly $2.5 billion.
These liquidations occur when traders borrow to bet on price rises. When prices drop past certain thresholds, exchanges automatically sell assets to repay loans, creating a domino effect: forced selling triggers further declines. Nearly 200,000 traders were affected on Saturday.
Michael Saylor’s Rough Day
Adding to the drama, bitcoin briefly fell below Michael Saylor’s average entry point of ~$76,037 for Strategy (MSTR), putting his holdings underwater. Panic spread over the possibility he would be forced to sell, amplifying the market’s downward pressure.
CoinDesk clarified that Saylor isn’t required to sell his bitcoin, as none of it is pledged as collateral. However, his ability to raise cheap capital to buy more bitcoin in the open market is limited, leaving the fragile market without a major buyer to absorb forced liquidations and profit-taking.
Wall Street Feels the Ripple
The contagion has seeped into traditional finance. While U.S. markets were closed for the weekend, Sunday evening futures showed losses across the board: Nasdaq futures down 1%, S&P 500 off 0.6%.
Retail Capitulation vs. Whale Accumulation
Wallet data tells a stark story. Small investors, holding fewer than 10 BTC, have been selling aggressively, spooked by a 35% drop from the $126,000 high. In contrast, “mega-whales” holding 1,000+ BTC quietly increased their positions, absorbing coins sold by panicked retail traders—but not enough to push prices higher.
The Bigger Picture: Boom, Bust, and Human Behavior
Despite this weekend’s turmoil, the crypto ecosystem has matured. Major institutions like BlackRock and JPMorgan are increasingly involved through ETFs and stablecoins. Regulatory frameworks are expanding, and publicly traded crypto companies are becoming core holdings for fund managers—scenarios unimaginable in previous cycles.
Yet human behavior remains constant. The speculative bubbles and boom-bust cycles seen in 2021 may now be mirrored in 2026, albeit with new actors: Michael Saylor’s aggressive buying, prominent crypto personalities, and large-scale corporate strategies replace the likes of TerraUSD, FTX, and Three Arrows Capital.
If history repeats, another 80% decline from October 2025’s $126,000 peak could see bitcoin near $25,000—a painful but potentially necessary reset. For context, the 2022 crypto winter saw a similar 80% drop from the peak, followed by a one-year recovery.
As Warren Buffett famously said, “It’s only when the tide goes out that you discover who’s been swimming naked.” The tide may not yet be fully out, but the warning signs are clear.
