Bitcoin Plunges Below $82K as Crypto Selloff Deepens Despite Bullish Regulatory Signals

Bitcoin tumbled to a two-month low Friday as cryptocurrency markets extended losses despite bullish commentary from top U.S. regulators signaling support for pension fund crypto access and forthcoming market structure legislation.

Bitcoin dropped 6.65% over 24 hours to $82,138 as of press time after dipping below $81,000 during Asian morning trading, its lowest level since late November.

Ethereum fell 7.55% to $2,737, while Solana declined 7.2% to $113.89. Total cryptocurrency market capitalization sank 6.13% to $2.8 trillion, per Coinmarketcap data.

Bitcoin now trades approximately 30% below its all-time highs reached in October 2025, reflecting sustained pressure despite growing institutional infrastructure and regulatory clarity.

The selloff contrasts sharply with statements from SEC Chair Paul Atkins and CFTC Chair Michael Selig, who told CNBC on Thursday that digital assets are poised to flourish under emerging U.S. regulations.

Atkins said "the time is right" for 401(k) retirement plans to include cryptocurrency, provided guardrails protect retirees. The remarks came as the Senate Agriculture Committee advanced draft crypto market structure legislation in less than an hour, though the bill faces a lengthy path to becoming law.

"A lot of people are already exposed to crypto and other sorts of assets like that through their pension funds," Atkins said, advocating for a measured approach with investor protections.

President Trump signed an executive order in August 2025 allowing crypto investments in 401(k) plans, potentially opening a $10 trillion retirement savings market to digital assets. The Department of Labor had previously warned fiduciaries to "exercise extreme care" before adding cryptocurrency to retirement plan menus.

Selig predicted digital assets will thrive once Congress finalizes regulations, arguing clear national standards could bring blockchain firms back to the U.S. from offshore jurisdictions where they relocated due to regulatory uncertainty.

"If we can set the standard in the United States, really a gold standard for crypto asset markets, we are going to see a lot of new types of products, a lot of new types of onchain markets and financial applications," Selig said.

Despite the regulatory optimism, crypto markets tracked weakness in risk assets. The S&P 500 slipped 0.13% to close at 6,969.01 on Thursday after briefly topping 7,000 for the first time Wednesday. Microsoft shares plunged nearly 10% in their biggest single-day drop since March 2020, following earnings results.

The Federal Reserve left interest rates unchanged Wednesday as expected, with markets pricing in no cuts until June as recent data shows economic resilience.

Traditional safe havens also pulled back from extreme levels. Gold fell 1.3% to $5,330.20 per ounce Thursday after touching a record $5,594.82 earlier in the session, though the metal remains on track for its best monthly performance since the 1980s. Silver declined 2.1% to $114.14 after reaching $121.64, still up more than 60% for January.