Bitcoin Falls Below $80,000 for the First Time in 4 Months – What’s Next? 📉
Bitcoin's price has plummeted below $80,000, representing a 14% decline in just one week. The cryptocurrency now trades at $77,800, while Ethereum stands at $1,860, its lowest since November 2023. This downturn has been exacerbated by extreme market fear, as indicated by the Crypto Fear & Greed Index, which has fallen to a mere 17.
Recently, $195 million in liquidations occurred, primarily from long positions, suggesting traders were unprepared for this downturn.
Institutional investors have been reducing their crypto exposure for four weeks, with $876 million in outflows, substantially affecting Bitcoin. US policy changes, including tariffs introduced by President Trump, have intensified the selling pressure.
Bitcoin's future remains uncertain, with opinions divided. Former BitMEX CEO Arthur Hayes predicts a drop to $70,000, anticipating a subsequent rally, while MicroStrategy plans to raise $21 billion for potential Bitcoin acquisitions.
However, skeptics warn that not all liquidity will flow into crypto.
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