Bitcoin fell sharply in early Saturday afternoon trading in New York, sliding below the $80,000 mark to levels last seen in April 2025, as geopolitical shocks and fragile market structure combined to accelerate losses.
Geopolitical shock hits risk appetite
The move extended a drawdown that has now wiped more than 30% off the value of the world’s largest cryptocurrency, with trading conditions exacerbated by thin weekend liquidity and limited buying interest.
The selloff gathered pace as broader risk sentiment deteriorated following reports of an explosion at Iran’s Bandar Abbas port, a critical shipping hub on the Strait of Hormuz that handles about a fifth of the world’s seaborne oil.
Tensions escalated further after Donald Trump reposted a message on Truth Social claiming Iran’s Islamic Revolutionary Guard Corps was in “full panic mode,” alongside footage showing apparent unrest in Tehran.
The flare-up added to already strained relations between Washington and Tehran, pushing investors away from riskier assets.
Macro uncertainty compounds crypto pressures
Political uncertainty in the US added another layer of strain.
A brief federal government shutdown began over the weekend after Congress failed to pass a full-year funding bill before a midnight deadline.
Although expected to be short-lived, the lapse reinforced broader concerns around policy stability.
Crypto-specific factors have also weighed on sentiment.
Bitcoin has struggled to attract sustained buying interest after a volatile start to the year, with flows into spot bitcoin exchange-traded funds turning negative this week.
Derivatives markets are still unwinding leverage built up late last year, leaving prices vulnerable during quieter trading hours.
Support levels come into focus
With confidence still fragile, attention is shifting to potential downside buffers. Buyers stepped in around $75,000 during a selloff in April last year, making it a key level to watch.
Below that, the next major technical support sits near the 200-week moving average at around $58,000.
For now, bitcoin remains vulnerable, with traders watching whether the weekend drop draws fresh demand or opens the door to deeper losses.
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