Bitcoin Sinks Below $84k as Crypto Selloffs Heat Up
Bitcoin (BTCUSD) fell 5.54% over the last 24h to around $84k, underperforming the broader cryptocurrency market’s 5.04% drop.
The decline has knocked down global market capitalisation below $3 trillion, as Ethereum and other top altcoins plunged as risk-off sentiment heated up.
BTC is trading at $83.6k level due to negative sentiment. Its price slipped as trading data showed a 61% increase in trading volume to $64.64 billion, keeping the global market cap of all digital assets at $2.86 trillion.
The drop was exacerbated by a massive unwind of leveraged positions. Bitcoin saw over $431 million in long position liquidations in 24 hours. Technically, BTC broke below the crucial $85,000 support level, confirming bearish momentum.
Trading turned red amidst expectations that President Trump will announce a new US Federal Reserve Chair next week. This expectation introduced volatility into monetary policy expectations amidst the Fed chair Jerome Powell’s criminal probe.
Concurrently, global risk assets sold off, with the Nasdaq falling sharply before a partial recovery. Bitcoin continues to trade as a risk-on asset, highly correlated with equity markets during periods of stress. Clarity on the Fed appointment and stabilization in equity markets could help restore calm.
Trading data showed that the sharp price decline extends a bearish trend, with BTC down 6% over the past week, over whale selling off positions amidst growing geopolitical instability.
On-chain data and social sentiment indicate heightened activity from large Bitcoin holders early on Friday. A notable transfer of 10,329 BTC, worth about $1.2 billion, flowed into spot exchanges.
Crypto analysts said such large inflows to exchanges are often a precursor to selling, as whales look to liquidate positions. This movement increases the immediate sell-side supply on order books.
According to separate analysts, when large holders distribute, it can overwhelm buy-side demand, pushing prices lower. The market interprets these flows as a loss of confidence from influential investors, which can trigger broader panic selling among retail traders.
The market looks forward to a reversal in exchange net flows, a signal that suggests whales are moving BTC back into cold storage, potentially stabilizing the price.
Liquidations force automatic selling, creating a negative feedback loop. The break of key support levels triggers algorithmic and stop-loss orders, accelerating the decline. The RSI reading of 34.4 indicates the market is not yet oversold, leaving room for further downside before a potential bounce.
The next major support is the recent swing low near $83,250. Holding above this level is critical to prevent a deeper fall toward $80,000. XRP Slumps by 5.4% as Cryptocurrency Selloffs Intensify
