Bitcoin Drops Under $83K, $240 Million in Liquidations Rock Crypto Market Bitcoin Drops Under $83K, $240 Million in Liquidations Rock Crypto Market

Key moments

• Bitcoin’s price plummeted below $83,000 on Monday, briefly touching $80,200.
• A massive liquidation event saw $240 million in Bitcoin positions closed, but whales have accumulated 22,000 BTC in just three days.
• Many crypto enthusiasts were disappointed in Trump’s crypto reserve as it lacked plans for new purchases.

Monday’s Trading Session Saw Bitcoin Dip to $80,200

The digital currency landscape experienced a significant tremor as Bitcoin’s valuation descended below the $83,000 threshold on Monday. This marked a notable setback amidst recent developments that had initially fueled optimism, and the decline represented a roughly 4% drop in value. The cryptocurrency briefly dipped below $80,200, though it managed to remain above the critical $80,000 support level.

Market analysis reveals a substantial wave of liquidations, with CoinGlass data indicating approximately $620 million liquidated across the broader crypto market. Of this sum, Bitcoin liquidations alone accounted for roughly $240 million. Despite this volatility, a countercurrent of accumulation has been observed, with Bitcoin whales acquiring upwards of 22,000 BTC within a mere three-day period.

The price retraction stands in stark contrast to the expectations generated by recent events, notably the announcement of a Strategic Bitcoin Reserve and a high-profile Crypto Summit. Initially, these developments were anticipated to serve as potent catalysts for price appreciation. However, the market’s response has been decidedly negative, leaving many analysts perplexed.

Several factors are believed to have contributed to this unexpected downturn. Prevailing macroeconomic uncertainties, including the implementation of new trade tariffs, have triggered sell-offs across various asset classes, including cryptocurrencies. Furthermore, the release of the non-farm payrolls report has raised concerns about potential monetary tightening by the Federal Reserve, adding further downward pressure on Bitcoin’s price.

While the announcement of the Strategic Bitcoin Reserve and the Crypto Summit initially generated considerable enthusiasm, the lack of concrete policy details appears to have dampened investor sentiment. Specifically, the Strategic Bitcoin Reserve, envisioned as a stockpile of seized cryptocurrencies, including Bitcoin, Ether, XRP, Solana, and Cardano, failed to meet expectations. The reserve, sourced from seized assets taken by the justice department, would not use taxpayer funds to purchase new coins. This aspect of the plan, while signaling government retention of its holdings, lacked any explicit commitment to actively acquiring additional Bitcoin, thus undermining market expectations of increased demand.