Bitcoin Experiences Significant Decline Below $80K Amid Market Turmoil
Bitcoin has fell below $80K amid bearish market sentiment and recession fears. Approximately $630 million in liquidations occurred recently, with concerns rising after President Trump’s Executive Order on Bitcoin. As the market assesses future movements, key support levels and economic factors will influence Bitcoin’s price trajectory.
On Monday, Bitcoin’s price significantly fell below $80,000, driven by persistent selling in the equities market. Over the weekend, bearish sentiment increased as Bitcoin broke key support levels. Analysts are now evaluating whether this downturn indicates Bitcoin has hit its lowest point or if further declines are imminent.
In the past 24 hours, Bitcoin has dropped nearly 4%, with investors expressing concerns over a potential economic downturn, especially after U.S. President Donald Trump did not exclude the possibility of a recession. Major stocks and indexes on Wall Street are also experiencing value loss.
Recent data from Coinglass reveals that around $630 million has been liquidated in the cryptocurrency market, including $210 million from Bitcoin long positions. Additionally, Ethereum longs have faced losses of $88 million, alongside another $80 million in long positions in various digital assets.
The decline in Bitcoin’s value can be traced back to President Trump’s signing of an Executive Order aimed at establishing the Strategic Bitcoin Reserve. The immediate drop likely stemmed from investors realizing that the order lacked specific funding for immediate Bitcoin purchases.
This order directs the Secretaries of Treasury and Commerce to explore methods for acquiring Bitcoin without impacting the federal budget, explicitly avoiding taxpayer funding for direct purchases. This has seemingly raised concerns among investors.
Furthermore, Bitcoin’s price decline has adversely affected a significant on-chain metric. According to data from IntoTheBlock, large transactions have decreased from a peak of 25.86K to 17.29K, signaling diminished interest from major investors, which may lead to more downward pressure in the near term.
A rebound in cryptocurrency prices may only occur if clearer regulations emerge, along with reassessments of the broad implications of Trump’s trade tariffs that have been unsettling global markets, affecting risk assets like cryptocurrencies.
Currently, Bitcoin prices reflect strong bearish pressure as it attempts to maintain a position below the critical $80K threshold. At present, Bitcoin trades at $79,329, marking a drop of 4.1% in the last 24 hours. The BTC/USDT trading pair may target a retest of the $75K level. With selling pressure increasing, there could be a consolidation below $75K, and a drop beyond this level could lead Bitcoin down to approximately $64K.
Conversely, should Bitcoin experience a resurgence in buying momentum and rebound above its current price, there may be potential for a breakout above the $80K mark and the declining resistance line, which could lead to a consolidation phase below $90K.
In conclusion, Bitcoin’s recent decline below $80,000 highlights growing investor concerns regarding economic stability and regulatory uncertainties. While short-term forecasts suggest possible further declines towards the $64K mark, a rebound could also occur if buying pressure increases and clearer regulations are established. Active monitoring of market sentiment and larger economic indicators will be crucial for determining Bitcoin’s next movements.
Original Source: coinpedia.org
Post Comment