Bitcoin Nears $80K in Relief Rally Amid Market Volatility

Bitcoin (BTC) surged close to the $80,000 mark in a sharp recovery after briefly falling below $75,000 late Monday. The relief rally triggered a wave of gains across major altcoins, with Dogecoin (DOGE), BNB, XRP, and Cardano (ADA) climbing as much as 10%. The CoinDesk 20 Index (CD20) also rose nearly 9%, reflecting broad market strength.

The total crypto market cap has rebounded to levels last seen in early November, when a post-election rally fueled bullish momentum. However, recent volatility remains fresh on traders’ minds. Over $1.2 billion in crypto futures were liquidated on Monday following a dramatic 20% drop in major digital assets, leading to a shakeout of overleveraged positions and paving the way for the latest bounce.

Traditional markets added to the uncertainty. The S&P 500 spiked over 7% on tariff rumors before pulling back sharply after the White House dismissed the news as false. This broader economic turbulence is causing investors to reassess safe-haven assets, with some turning to Bitcoin as a hedge.

Jupiter Zheng of HashKey Capital noted that while Bitcoin has declined, it remains relatively stable compared to traditional markets. Traders are watching closely for signs of sustained dip buying.

Still, caution prevails. Alex Kuptsikevich of FxPro described the market as “emotionally oversold” and emphasized that key reversal catalysts are still absent. He also noted that crypto sentiment is in the “extreme fear” zone, suggesting that while the sell-off may be more orderly than in equities, it could also signal deeper risks.

As Bitcoin approaches the $80K milestone, investors are weighing short-term volatility against long-term opportunities in the evolving macro environment.