Sudden $1 Trillion Crypto Market Shock Sees Bitcoin Plunge Under $80,000 Price
Bitcoin has plunged under $80,000 per bitcoin as a crypto rout that’s wiped $1 trillion from the combined market gathers pace, fueling fears of more pain to come.
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The bitcoin price is down around 25% from its all-time high of almost $110,000 per bitcoin, crashing back as insiders warn of bitcoin price “suppression.”
Now, as traders are warned not to “buy the dip,” analysts are predicting how deep the bitcoin price correction could go and if it will escalate into a full-blown market crash.
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“According to technical analysis, the next target for bitcoin’s price is around the $70,000 level, which serves as a strong support zone,” Ruslan Lienkha, chief of markets at bitcoin and crypto platform YouHodler, said in emailed comments.
“However, we will only see this level if negative sentiment dominates the equity markets. U.S. stock indices have been in the red for several consecutive days, but it is still too early to conclude that the broader uptrend has ended—it could simply be a market correction.”
“Bitcoin follows a textbook ascending broadening wedge pattern, which projects a target price in the low $70,000s,” Markus Thielen, the founder of 10x Research, said in an emailed note.
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The bitcoin price has dropped sharply from its all-time highs.
Analysts also pointed to U.S. president Donald Trump’s growing international trade war as driving the latest crypto market sell-off, which comes alongside the U.S. stock market falling from its all-time highs.
“The crypto market is currently very edgy, with the number 21 reading on the Crypto Fear & Greed index—marking its lowest level since September,” Agne Linge, head of growth at decentralized onchain bank WeFi, said via email.
“With the tariffs on Canada and Mexico set to take effect on March 5, the mainstream stock market is reacting to potential economic fallout. Many might continue to rotate capital from risky assets without guaranteed insulation from these trade wars. Based on the regional economic uncertainty, investors need stability, and as a naturally volatile asset, bitcoin does not offer that in the short term.”
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Crypto Trader Issues Bitcoin Alert, Says BTC Flashing Signal That Previously Triggered a Bear Market
Analyst and trader Ali Martinez is warning that a bearish signal is flashing on Bitcoin (BTC) amid a correction that has seen the crypto king fall to a three-month low.
Martinez tells his 128,800 followers on the social media platform X that a bearish divergence is evident on Bitcoin’s weekly time frame.
A bearish divergence occurs when price is recording higher highs and higher lows while an indicator such as the Relative Strength Index (RSI) is recording lower lows and lower highs. The RSI indicator is a momentum oscillator used to determine oversold or overbought conditions.
According to Martinez, Bitcoin had a similar divergence in November of 2021 prior to the bear market that followed and which saw BTC fall from the then-record high of around $69,000 to a cycle low of about $15,500 a year later.
Over the short term, Martinez says Bitcoin lacks “significant support” below the $93,198 price and $70,440.
The crypto trader further says that if the current Bitcoin cycle mirrors that of the first-halving cycle which ran from 2011 to 2015, it could be an indication that the crypto king topped out at $108,800 and is primed for further correction.
If Bitcoin’s price action mirrors that of the second-halving cycle, Martinez says,
“If Bitcoin follows the 2015-2018 cycle, this could suggest much more room to grow before the market top!”
Bitcoin is trading at $85,822 at time of writing, down by about 21% from the all-time high reached on January 20th.
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The tokenization of RWAs (real-world assets) stands at an inflection point, with the market reaching $56 billion and poised for explosive growth.
While skeptics have long criticized cryptocurrency’s lack of intrinsic value, RWA platforms fundamentally reshape this narrative by bringing tangible assets – from real estate to equities – onto the blockchain.
Four key players exemplify the sector’s maturation and growing institutional adoption.
Their success underscores a crucial reality – RWA operates as a complex two-sided marketplace, requiring both willing asset owners and sophisticated investors.
As Wall Street takes interest, a new batch of regulations that nurture the burgeoning sector is crucial for long-term growth.
Pendle
Pendle offers perhaps the most innovative approach to yield-bearing assets.
Unlike traditional products where ownership and yield are inseparable, Pendle’s model allows separate trading of PT (principal tokens) and YT (yield tokens).
This flexibility has driven their total value locked to $5.9 billion, five times larger than that of their nearest competitor.
Their fixed yields for popular products reach as high as 14.7% for USDe, attracting investors seeking stable returns in volatile markets.
Ethena
Ethena’s trajectory demonstrates the critical role of venture capital in shaping the RWA landscape.
Following a $14 million Series A round that attracted investments from Franklin Templeton and Fidelity, they’ve secured strategic partnerships with World Liberty Financial and Deribit.
Their synthetic dollar, sUSDe, offering a six percent APY, represents a new generation of yield-bearing assets designed for institutional adoption.
Ondo
Ondo Finance exemplifies the sector’s push toward mainstream integration.
Through partnerships with BlackRock and Morgan Stanley, they’ve launched tokenized versions of blue-chip stocks and ETFs, including Coca-Cola (onKO) and SPDR Gold Shares (onGLD).
Their recent announcement of Ondo Chain – purpose-built for institutional-grade RWAs – signals growing confidence in the sector’s future.
What makes these developments particularly significant is their timing.
As retail investors grow increasingly sophisticated and demand more stable investment vehicles, RWA platforms offer a compelling solution.
When the average US home price stands at $356,585, fractional ownership through tokenization democratizes access to previously exclusive asset classes.
The regulatory environment appears increasingly supportive – particularly in the US – where stablecoin legislation is gaining momentum.
This could provide a substantial boost to yield-bearing assets like Ondo’s USDY, currently unavailable to US investors.
Wall Street’s latest (and biggest?) bet
The RWA transformation extends beyond traditional finance – innovative projects are exploring tokenization of everything from aviation financing to electric motorcycle fleets, demonstrating the versatility of RWA platforms.
However, challenges remain. The sector must navigate complex regulatory requirements, ensure robust security measures and build sufficient liquidity across various asset classes.
Success requires substantial capital – evidenced by the aggressive fundraising among leading platforms – to secure regulatory approvals and build institutional-grade infrastructure.
Even with these challenges, traditional financial institutions are taking notice.
The involvement of firms like BlackRock, Morgan Stanley and Fidelity isn’t merely symbolic – it represents a fundamental shift in how Wall Street views digital assets.
These partnerships provide crucial infrastructure and credibility, helping bridge the gap between traditional and DeFi (decentralized finance).
Yet the trajectory is clear. RWA tokenization represents more than just another blockchain use case – it’s a fundamental reimagining of how we interact with traditional assets.
By breaking down barriers to investment and creating more efficient markets, these platforms are driving what may be the most profound cultural and economic impact within the crypto space.
As we move through 2025, the question isn’t whether RWA will transform finance, but rather which platforms will emerge as the dominant players in this new paradigm.
For investors and institutions alike, understanding this evolution isn’t just advantageous – it’s essential.
The next phase of growth will likely come from increased institutional adoption, regulatory clarity and innovative applications that push the boundaries of what can be tokenized.
Li Liang is the CEO of HashKey OTC, where he guides institutional investors, family offices and corporate clients with their digital investment strategies.
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