Bitcoin Plummets! Three Major Reasons Revealed, Is the Panic Not Over?
In the past 24 hours, the price of Bitcoin has been severely hit, falling by 4% and triggering market panic. The total market value of cryptocurrencies has evaporated by nearly $99 billion, dropping to $2.89 trillion. What exactly caused the sudden crash of Bitcoin? Here are the core reasons:
🔥 Government Bitcoin Policy, Market Confidence Collapses
The announcement by President Trump to establish a U.S. Bitcoin reserve had briefly excited the market, causing Bitcoin to soar to $92,000. However, when investors realized that the government had no clear purchasing plan and was merely “holding” seized assets, market sentiment took a sharp downturn, undermining investor confidence and driving prices down.
💰 Massive Outflow from Bitcoin ETF, Institutions Withdraw
The Bitcoin spot ETF faced a huge sell-off, with $134.3 million flowing out within 24 hours.
BlackRock iShares Bitcoin Trust saw an outflow of $50.6 million
Grayscale Bitcoin Trust saw an outflow of $34.5 million
Franklin Templeton Fund saw an outflow of $18 million
This wave of institutional withdrawal indicates a significant increase in market sell-off pressure, further exacerbating Bitcoin's downward trend.
⚡ Huge Liquidations Trigger Chain Reactions, Market is Bloodied
The wave of market liquidations intensified Bitcoin's crash, with bulls suffering massive losses! In the past 24 hours, the market lost up to $531 million, with long traders losing $398 million. The largest single liquidation reached $15.4 million, directly intensifying the market sell-off wave.
📉 Bitcoin Key Support in Crisis, Could It Drop Below $85,000?
Technical indicators show that Bitcoin is struggling to hold the critical support level of $89,041. If it breaks below this level, it could quickly head towards $85,000 or even $82,761. However, if it can return above $90,800, it may rebound to $93,625.
The market storm is still not over; will Bitcoin's future trend be a rebound from the bottom or a continued decline? Stay tuned!
