The Price of Bitcoin Drops to $83,330 In the midst of market panic:
As panic selling swept the cryptocurrency market, the price of bitcoin drops, plunging as low as $83,330 late Wednesday. Continued tariff conflicts and other macroeconomic issues continue to put pressure on the biggest cryptocurrency in the world.
Extreme panic among traders was indicated by the panic & Greed Index plummeting below 10, a level not seen since June 2022
Outflows from Bitcoin ETFs Soar:
Specifically, U.S. spot Bitcoin ETFs had record withdrawals of $1.136 billion on Tuesday and an additional $757 million on Wednesday, and the steep decrease comes after a wave of institutional sell-offs. The $332 million withdrawal on January 2 was surpassed by a record outflow of 5,000 BTC on February 26 from BlackRock’s spot Bitcoin ETF (IBIT).
The decline has been exacerbated by the aggressive unwinding of basis trades, in which speculators profit from price differences between the spot and futures markets. As a result, Bitcoin is now at its lowest point since November 2024. Short-term forecasts for Bitcoin are still pessimistic.
Market Capitalization Drop and Altcoins:
As big cryptocurrencies like Solana (SOL), Binance Coin (BNB), and XRP also saw declines, Ether followed suit, falling more than 5% to $2,300. In just one day, the total value of the cryptocurrency market fell 5%, to $2.88 trillion, according to Coingecko.
The Sell-off of Bitcoin Causes Massive Liquidations:
Over 185,186 leveraged traders were eliminated in the last day as a result of the slump, which set off a chain reaction of liquidations. According to Coinglass data, the total amount of liquidations hit $768 million, of which $461 million came from Bitcoin and $127 million from Ether. Solana, Lido, and Sonic were among the high-risk altcoins that had losses of 5–6%.
Market attitude has changed as a result of poor macroeconomic data, despite initial optimism on pro-crypto measures under the new U.S. administration. Declining prices and falling Bitcoin volatility indicate that speculators are growing less optimistic about short-term returns.
Important Support Levels & Market Outlook:
Van de Poppe stated that:
- In order to activate resting buy orders, Bitcoin had to fall below $90,000.
- The final bottom might be between $83,000 and $87,000.
- A bullish reversal might occur once Bitcoin enters this liquidity zone.
Marcus Thielen, head of research at 10x Research, concurs with van de Poppe, pointing to the $85,000 zone as a crucial support level, which he believes, in conjunction with the 200-day Exponential Moving Average (EMA), could mark a turning point for the cryptocurrency.
Also keep in mind that a cryptocurrency theft of $1.5bn was carried out by some unknown hackers, that could’ve effected the market too.
