Bitcoin drops to $80K as analysts warn of more volatility

Bitcoin (CRYPTO:BTC) has fallen to just above $80,000 on March 10, with analysts warning of further downside as market conditions remain uncertain.  

Arthur Hayes, co-founder of BitMEX and chief investment officer at Maelstrom, commented on X that Bitcoin could retest $78,000.

“If it fails, $75,000 is next in the crosshairs,” he stated.  

He also noted that a significant amount of Bitcoin options open interest exists between $70,000 and $75,000.

“If we get into that range, it will be violent,” Hayes said.  

According to Deribit data, open interest at the $70,000 strike price stands at $696 million, with $659 million at $75,000 and $680 million at $80,000, indicating a strong presence of short positions.  

Market research firm 10x Research described the drop as a “textbook correction,” noting that “with Bitcoin dipping below $80,000, approximately 70% of all selling came from investors who bought within the last three months.”

The firm highlighted that this reflects “the dominance of recent entrants panic-selling into the decline.”  

Hayes previously predicted in January that Bitcoin could return to $75,000 before surging to $250,000 this cycle. In February, he warned of a potential drop to $70,000 as hedge funds adjusted their ETF positions.  

Meanwhile, the Bitcoin Fear Greed Index has fallen into the “extreme fear” category, registering a reading of 20 on March 10.  

The volatility may continue this week as key US inflation reports are expected, which could influence Federal Reserve policy if inflation remains elevated.

At the time of reporting, the Bitcoin price was $82,483.33.