Bitcoin Plummets 20% to $85,000 as Macro Fears Intensify

Bitcoin (BTC) has experienced significant selling pressure, falling below the $85,000 level and reaching its lowest point since November 2024. This decline has heightened fear and uncertainty among investors, as the entire crypto market grapples with negative macroeconomic conditions and a shift towards risk-off sentiment.

The recent volatility and instability in the market can be attributed to various factors, including the policies of the U.S. President, rising global trade war fears, and erratic economic decisions. These elements have contributed to a broader financial market weakness, which has dragged down Bitcoin and other cryptocurrencies.

According to data from Glassnode, the Mayer Multiple indicates that the next key support level for Bitcoin is at $66,000. If the current sell-off persists, BTC could test this level in the coming weeks, marking a substantial correction from its recent highs.

Bitcoin has been in a consistent downtrend since late January, with investor sentiment dominated by fear. Many believe that the bull cycle is over, as BTC continues to set lower highs and break key support levels. The market remains under bearish control, with cautious investors setting lower targets.

Since the U.S. elections in November 2024, macroeconomic uncertainty and volatility have been major drivers of the market. The rise in global trade tensions, erratic economic policies, and shaken investor confidence have all contributed to Bitcoin’s extended correction. With U.S. stock markets also struggling, Bitcoin has failed to find the momentum needed for a recovery.

Top analyst Ali Martinez highlighted that Bitcoin is now trading below the 200-day moving average, a key technical indicator that often signals long-term trend direction. According to the Mayer Multiple, the next major support level sits at $66,000. If BTC fails to stabilize above current levels, further selling pressure could send Bitcoin toward this lower support zone in the coming weeks.

For Bitcoin to reverse its downward trend, bulls must reclaim the 200-day MA around $83,500. A break and hold above this level would indicate strength returning to the market and could prevent further downside. However, if BTC fails to regain momentum, fear and uncertainty will continue to drive prices lower, making the next few weeks crucial for Bitcoin’s market structure.

Bitcoin is currently trading at