Bitcoin Drops Below $85,000 Amid Profit-Taking, ETF Outflows

Bitcoin (BTC) experienced a significant decline, falling below the $85,000 mark and trading at $82,800 at the time of reporting. Despite a modest 1.17% daily gain, BTC recorded a weekly decline of 0.77%. Long-term holders were observed to be locking in profits, with data indicating significant selling activity, as 178,000 BTC were offloaded in recent months. Meanwhile, public companies accumulated around 95,000 BTC.

Further pressure on Bitcoin came from ETF outflows, particularly from U.S.-based Bitcoin exchange-traded funds, reflecting institutional hesitancy. Economic headwinds, including recession fears and tighter monetary policies, have amplified selling behavior and triggered caution among both retail and institutional investors.

Ethereum (ETH) also faced a downturn, dropping to $1,831.43. It managed only a 0.93% intraday recovery, while still showing a 4.03% weekly loss. Over $500 million in crypto was liquidated in the past 24 hours alone, with Ethereum taking a significant share of that blow. Technical analysts identified a rising wedge pattern, typically signaling downward pressure. As ETH approaches critical support levels, traders are closely watching for signs of a potential reversal, though market-wide sentiment remains bearish in the short term.

XRP witnessed a moment of strength, surging past the $2 mark briefly before falling back to $2.09. The asset posted a 2.34% daily gain, but suffered a 6.20% weekly decline, largely attributed to the monthly release of 300 million XRP from Ripple’s escrow wallet. This increase in circulating supply likely contributed to short-term price weakness. Despite the dip, XRP maintained strong trading volume, clocking in at $4.45 billion, signaling ongoing interest from traders. The community continues to monitor developments from Ripple Labs, especially legal and regulatory updates, which often play a pivotal role in XRP’s price direction.

Broader economic signals are exacerbating volatility in the crypto sector. Major U.S. stock indices suffered notable losses. Recent tariff announcements targeting imports have added fuel to the fire. Additionally, recession concerns are on the rise, with data suggesting a 51% probability of a U.S. recession in 2025. This sentiment is driving speculation that the Federal Reserve may consider early interest rate cuts, a factor that could eventually benefit risk assets like cryptocurrencies, depending on timing and market reaction.

Investors are now eyeing $80,000 as a key support level for Bitcoin, a breach of which could trigger more selling. However, analysts caution against counting out a potential rebound, especially if macro conditions shift in favor of risk-on assets.