Bitcoin's price fell sharply during Saturday trading, dropping as low as $78,159, levels unseen since April 2025. The cryptocurrency ended the day down over 6.5%, closing near $78,700. This steep decline deepens a drawdown that has erased more than 30% of Bitcoin’s value from recent highs around $90,000 earlier this month.
The weekend selloff followed political developments in the U.S. where the nomination of former Federal Reserve Governor Kevin Warsh as the next Fed chair led to strengthening of the U.S. dollar and a simultaneous unwind of precious metals and crypto rallies. Warsh’s hawkish reputation initially sparked fears of tighter monetary policy, causing risk-off sentiment among investors.
However, the drop in Bitcoin price was aggravated by structural issues surrounding its mining network. CryptoQuant data revealed a roughly 12% decline in Bitcoin’s hash rate, marking the sharpest drop since China’s mining ban in 2021. Severe winter storms in the United States forced multiple large mining operations to curtail or pause activity. This disruption in mining lowers network production and reduces revenue for miners, further pressuring market confidence.
This confluence of macroeconomic and operational factors coincided with a significant change in market participation. Onchain analytics firm Glassnode highlighted that while retail and smaller holders have been rushing for the exit amid the selloff, so-called 'mega-whales'—those holding 10,000 or more bitcoins—have been quietly buying the dip. This buying activity from large holders contrasts with the mass retail liquidation, indicating a divergence in market sentiment.
Despite the downturn, some prominent Bitcoin investors remain unfazed. Michael Saylor’s investment firm MicroStrategy saw its Bitcoin holdings briefly slip below their average purchase price, around $76,037 per coin, due to the weekend’s price slide to roughly $75,500. Yet, Saylor and his team have indicated no intention to panic sell, viewing this as a temporary retracement rather than a foundational change.
The broader cryptocurrency market mirrored Bitcoin’s weakness, with Ethereum and other major altcoins such as Solana and Dogecoin sliding roughly 7%, contributing to about $850 million in liquidations across futures contracts. This liquidation cascade underlines the fragility of the current market environment amidst geopolitical tensions and regulatory uncertainties.
Investor sentiment metrics confirm the shift toward fear, with social media analytics firm Santiment reporting that negative commentary around Bitcoin has reached the highest level so far in 2026. This represents the lowest sentiment since late November 2025, raising concerns about further downside pressure as traders adopt defensive postures ahead of key political events and potential economic data releases.
The pullback in Bitcoin’s price has also impacted its standing among global assets. Its market capitalization dropped to approximately $1.57 trillion, relegating it to the 13th-largest asset worldwide, now trailing behind companies such as Saudi Aramco and Tesla. This marks a notable departure from its previous position within the top 10 assets by market cap, underscoring the scale of this correction.
Looking Ahead: Navigating Uncertainty
Market participants are watching carefully to see if Bitcoin can hold above critical support levels near $78,000 to $79,000 in the coming days. Onchain data shows Bitcoin recently broke below a key support level tracked by Glassnode, raising concerns about potential further downside. The next few sessions will be crucial in determining whether these lows will hold or if the slide will deepen, possibly leading to increased volatility.
Meanwhile, the mining hash rate disruption adds another layer of complexity, as prolonged weakness in network activity could affect transaction processing times and miner profitability. Should adverse weather conditions persist or further regulatory hurdles arise, the recovery of mining operations might be delayed.
Institutional interest in accumulation remains a silver lining, suggesting that confidence in Bitcoin’s long-term value proposition among big holders persists despite the near-term turbulence. This dynamic between retail selling and whale buying will likely influence Bitcoin’s price trajectory over the short to medium term.
For now, Bitcoin’s journey below $80,000 marks a significant chapter in its 2026 narrative, testing the resilience of holders and the broader crypto ecosystem amid challenges both external and internal.