Bitcoin Plummets 4% as $99 Billion Evaporates from Crypto Market
1min read Bitcoin's price has experienced a significant drop, falling 4% in the past 24 hours, which has left investors concerned. The global cryptocurrency market lost nearly $99 billion in value within a single day, reducing the total market capitalization to $2.89 trillion. The sudden decline in Bitcoin's price can be attributed to several key factors.
One of the primary reasons for Bitcoin's decline is the uncertainty surrounding the U.S. government's plans for its Bitcoin reserves. Initially, Bitcoin surged to $92,000 following the announcement of a U.S. Strategic Bitcoin Reserve by former President Donald Trump. However, the market quickly turned bearish as the executive order did not provide clear details on how the government would acquire more Bitcoin. This lack of clarity has left investors skeptical, with some experts suggesting that the absence of a clear accumulation plan could hinder Bitcoin's long-term growth.
Another significant factor contributing to Bitcoin's drop is the substantial outflow from Bitcoin spot ETFs. According to available data, Bitcoin spot ETFs recorded a massive outflow of $134.3 million. This outflow occurred shortly after a day of positive inflows, where Bitcoin ETFs saw $22.1 million entering the market. Leading the outflows were major funds, indicating strong selling pressure from institutional investors.
In addition to the ETF outflows, increasing market liquidations have added to the selling pressure. In the last 24 hours, traders lost a total of $531 million, with long traders suffering the most. Long positions accounted for $398.3 million of these liquidations, while short traders faced $133 million in losses. As long positions get wiped out, the selling pressure increases, pushing Bitcoin's price even lower.
Technical analysis suggests that Bitcoin is struggling to hold its key support level of $89,041. If it fails to reclaim this level, further declines toward $85,000 or even $82,761 could occur. However, if Bitcoin manages to flip the $90,800 resistance into support, it could attempt a recovery toward $93,625.
The cryptocurrency market's downturn was also exacerbated by ongoing macroeconomic concerns and the upcoming Crypto Summit 2025. Investors are closely monitoring the summit for potential recovery signals and regulatory 