Bitcoin Price Drop: Market Struggles as BTC and Altcoins Face Steep Declines
The Bitcoin price drop has shaken the crypto market, with BTC hovering near the critical $80,000 mark. As of Sunday evening, Bitcoin (BTC) was trading at $81,678, recovering slightly from an intraday low of $81,551. This decline has left investors wary, as BTC has lost 4.27% against the dollar over the past week.
The broader crypto market has also suffered, with Ethereum (ETH) plunging 9.7% and XRP facing a sharp 12% correction. Altcoins have mirrored Bitcoin’s downward trajectory, leading to a general sense of unease among traders. The global crypto market cap now stands at $2.66 trillion, reflecting a 0.41% decline.
Bitcoin Price Drop Continues Amid Weak Investor Sentiment
The ongoing Bitcoin price drop is attributed to several factors, including weak investor sentiment and reduced buying pressure. Data from CryptoQuant.com indicates a subdued Coinbase Premium Index, signaling low interest from U.S. investors. In contrast, South Korean retail traders have been more active, with Upbit listing Bitcoin at $83,676—significantly higher than global averages.
Despite recent ETF inflows, Bitcoin’s downward pressure remains strong. With trading volume down by 17% compared to the previous day, BTC’s momentum appears sluggish. The market’s overall sentiment suggests that further downside potential remains unless strong support levels hold.
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Crypto Market Liquidations Surge Amid Bitcoin Price Drop
The crypto market’s decline has resulted in significant liquidations. Over the past 24 hours, the market has seen $192.64 million in liquidations, with Bitcoin long positions accounting for $44.08 million. Ethereum traders faced even greater losses, with $45.09 million liquidated. The largest single liquidation occurred on Binance, where a $13.31 million ETH/USDT position was wiped out.
With nearly 69,760 traders experiencing losses in a single trading session, leveraged positions have proven to be a major risk. The recent Bitcoin price drop has emphasized the volatility of the crypto market, making risk management crucial for traders and investors alike.
Will Bitcoin Recover or Fall Below $80K?
As Bitcoin struggles to maintain its current levels, analysts are watching key support zones closely. A decisive move below $80,000 could trigger further sell-offs, pushing BTC toward lower price levels. On the other hand, a strong rebound from current levels could signal renewed bullish momentum.
Despite the short-term bearish outlook, long-term fundamentals for Bitcoin remain strong. Institutional adoption, ETF approvals, and increasing mainstream interest continue to support the market. However, traders should remain cautious in the face of ongoing volatility.
