Bitcoin’s sharp drop toward the 84000 level has intensified pressure across the crypto market, even as stocks and precious metals staged partial recoveries from their intraday lows. The selloff unfolded rapidly during U.S. trading hours, reflecting a broader risk off move driven by macro uncertainty rather than crypto specific headlines alone. While equities, gold, and silver managed to bounce as the session progressed, digital assets remained pinned near the day’s weakest levels. Major tokens recorded losses in the range of five to seven percent over twenty four hours, reinforcing the sense that crypto is lagging other asset classes in stabilizing. The downturn triggered heavy unwinding of leveraged positions, amplifying volatility and raising concerns about whether the market has reached a temporary bottom or still faces deeper downside in the near term.
The speed of the move resulted in more than 650 million dollars in liquidations across the crypto market, as bullish traders were forced out of leveraged positions. This flush ranks among the largest liquidation events of the past month and highlights how crowded positioning had become despite weakening momentum. Analysts point to a combination of factors weighing on sentiment, including fragile earnings expectations, geopolitical tensions, and concerns over government shutdown risks. These pressures have driven systematic funds and hedge strategies to reduce exposure across multiple asset classes, with crypto caught in the same wave of deleveraging. Unlike equities and metals, however, crypto has yet to attract meaningful dip buying, suggesting investors remain cautious about stepping back into risk while broader uncertainty persists.
Despite the negative tone, some market indicators suggest downside momentum may be approaching exhaustion. Funding rates in perpetual futures have turned decisively negative across major tokens, signaling that bearish positioning is becoming crowded. Historically, such conditions have often preceded short term rebounds as short sellers become vulnerable to sharp reversals. From a price perspective, the 84000 area carries added significance, as it sits close to the aggregate cost basis of U.S. spot bitcoin ETF buyers. Below that, the region around 80000 stands out as a major structural support level, aligning with prior cycle lows and long term valuation metrics. A sustained break beneath that zone would likely shift focus toward deeper retracement levels seen earlier last year. Until then, bitcoin appears stuck in a holding pattern, waiting for clearer macro signals that could reset risk appetite.
