Bitcoin Plunges Back to $86K, Erasing Nearly All Gains from the Previous Day

Bitcoin experienced a sudden pullback to $86,000, wiping out nearly all of its gains from the previous day. This price fluctuation followed reports about a new U.S. initiative on cryptocurrency reserves, which includes Bitcoin and other major digital assets.

After surging past $94,000, Bitcoin swiftly retraced, marking extreme volatility within the past 48 hours. Data from CryptoQuant highlighted significant activity among cryptocurrency exchanges, revealing key insights into market movements.

The inflow and outflow of Bitcoin across exchanges have played a crucial role in shaping market sentiment and price trends. On February 25, approximately 8,400 BTC were deposited into exchanges, increasing selling pressure and triggering a subsequent price drop. However, the following day saw a reversal, with a substantial outflow of Bitcoin signaling a shift toward long-term holding strategies. This shift helped stabilize Bitcoin’s price and contributed to its recovery in early March.#BTC☀