Bitcoin Drops 4.89% in 24 Hours Amid Market Correction and Regulatory Speculation

Bitcoin's price recently experienced a short-term dip, falling below $87,000. This decline occurred despite the implementation of a strategic reserve and the anticipation surrounding the cryptocurrency summit. The price decrease of 4.89% in the last 24 hours has been noted, with the daily trading volume surging by 14.99%.

Analysts have been closely monitoring the daily chart, which indicates that Bitcoin is currently in a correction phase following a peak at $106,447. Key support levels are identified at $78,000–$82,000, while resistance levels are at $92,000–$95,000. This correction phase is not uncommon in the crypto market, as parabolic rises are often followed by periods of consolidation where investors take profits, leading to short-term price declines.

Bitcoin's price faced rejection around the $95,000 level on Sunday and declined by 8.54% the next day. On Tuesday, BTC dipped below the daily support level at $85,000. This price movement reflects a mix of investor sentiment, regulatory influences, and macroeconomic conditions. Despite this short-term stability, Bitcoin’s broader market movements suggest a period of consolidation following a recent correction from its all-time high.

The recent correction aligns with historical trends where Bitcoin retraces after reaching record highs before continuing its long-term upward trajectory. Analysts attribute the price stabilization to institutional accumulation at key support levels, as well as increasing confidence in Bitcoin’s role as a store of value and inflation hedge. Institutional players, including hedge funds and sovereign wealth funds, have continued to accumulate Bitcoin, signaling long-term optimism despite near-term volatility.

Regulatory developments in the United States have played a crucial role in shaping Bitcoin’s recent price movements. The announcement of a strategic cryptocurrency reserve, which includes Bitcoin alongside other leading cryptocurrencies, has been a game-changer. This policy shift represents a growing acceptance of digital assets as a legitimate part of the financial system. The upcoming White House Crypto Summit has further fueled market speculation, with investors anticipating announcements regarding the implementation of the crypto reserve and regulatory frameworks.

Despite regulatory advancements, debates within the financial sector persist. Some industry leaders argue that Bitcoin should remain the primary focus of institutional investment