Bitcoin risks triggering $1.13 billion worth of cumulative leveraged long liquidations if it falls below the $82,000 price support.
Bitcoin could face increased downside volatility if it closes the week below the key $82,000 support level as investor sentiment remains subdued following short-term disappointment in the US Strategic Bitcoin Reserve.
President Donald Trump’s executive order, signed on March 7, outlined a plan to create a Bitcoin reserve using cryptocurrency forfeited in government criminal cases rather than actively acquiring Bitcoin
through market purchases.
The lack of direct federal Bitcoin investment has “led to a near-term negative market reaction and a decline in Bitcoin’s price,” according to Bitfinex analysts.
Bitcoin needs to close the week above the key $82,000 support to avoid a further decline due to this short-term investor disappointment, the analysts told Cointelegraph, adding:
“Investors had anticipated that federal accumulation of Bitcoin would signal strong institutional support, potentially driving prices higher. However, the reliance on existing holdings without additional investments has tempered these expectations.”
“It demonstrates the sensitivity of cryptocurrency markets to government actions and policies,” the analysts added.
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