Bitcoin dropped below $80,000 in weekend trading, extending a sharp pullback that has erased roughly a third of its value since its October 2025 highs.
In one widely cited snapshot, bitcoin fell about 6.5% to roughly $78,700, after trading as low as about $81,100 the previous day—levels described as the weakest since late 2025 by some reports and as the lowest since April 2025 by others.
Two drivers stood out in the reporting: First, liquidity. Several market write-ups pointed to thin weekend liquidity magnifying moves, with limited buyers stepping in as selling accelerated. Second, a shift in policy expectations. Traders pointed to renewed worries about tighter monetary conditions and reduced system liquidity after President Donald Trump said he planned to nominate Kevin Warsh to lead the Federal Reserve. Coverage highlighted Warsh’s past emphasis on shrinking the Fed’s balance sheet—an approach that can drain liquidity from markets and often pressures risk assets.
The selloff was broad across major tokens. Ether fell by roughly 12% to around $2,388 in the same window, underscoring that the move was not isolated to bitcoin.
The immediate question for traders is whether the drop becomes a quick “liquidity air pocket” reversal—or whether it marks a deeper repricing of risk as investors reassess policy, volatility, and geopolitical headlines.