Bitcoin Plummets Below 84000 Amidst Lackluster Indicators and Macro Concerns

Bitcoin, the largest cryptocurrency by market capitalization, has experienced a significant decline, falling below $84,000. This drop is attributed to lackluster on-chain indicators and a general lack of buying pressure from both institutional and individual investors. The decline comes amidst a backdrop of investor disappointment regarding the lack of a direct federal Bitcoin investment announcement from the US government. This disappointment has led to a correction risk below $82,000, with ongoing macroeconomic concerns related to import tariffs further exacerbating the situation.

The recent executive order for a Strategic Bitcoin Reserve (SBR) by Donald Trump was initially seen as bullish news. However, the lack of bullish momentum despite this development has raised concerns about an extended bearish move. The executive order focused on Bitcoin confiscated from previous seizures, which left many bullish investors underwhelmed. This has led to a shift in market dynamics, with large players and whale investors already pricing in the impact of the SBR.

Bitcoin’s seven-day chart confirms a 3.37% decline while daily trading volumes are down by a staggering 53%. Alongside the falling metrics, Bitcoin whales are scooping coins en masse, racking up over 22,000 BTC in three days. The recent decline in Bitcoin price follows a bullish week capped by the signing of an executive order for a Strategic Bitcoin Reserve. A Crypto Summit at the White House and declarations by the OCC for cryptocurrencies were expected to send prices rallying. However, the reverse appears to be the case with Bitcoin price threatening to slip below $80K.

There are several reasons for unsavory prices after the rally-inducing fundamentals of the past week. Right off the bat, macroeconomic factors like tariff implementation by the US have triggered sell-offs for Bitcoin and other cryptocurrencies. Furthermore, the release of the non-farm payrolls (NFP) report on Friday signaled that monetary tightening by the Feds could be on the horizon, negatively affecting Bitcoin price. Experts say an executive order for a Strategic Bitcoin Reserve and Crypto Summit without the “actionable” policies may have dampened the enthusiasm of investors. Bitcoin’s decline is dragging altcoins underwater with ETH, XRP, and BNB losing 3.24%, 6.38%, and 4.78% respectively over the last day