Market Turmoil as Bitcoin Plunges Below Critical Support
Bitcoin (BTC) has plummeted below the crucial $90,000 level, sending shockwaves through the crypto market amid growing economic uncertainty and geopolitical tensions. The dramatic decline was triggered by Donald Trump’s announcement of a 25% tariff on Canadian and Mexican imports, sparking fears of economic instability and triggering a widespread crypto selloff.
The flagship cryptocurrency touched a low of $86,300, while the broader crypto market shed a staggering $230 billion in market value. Adding to market concerns, crypto funds witnessed significant outflows totaling $508 million, signaling growing investor skepticism. The recent Bybit hack has further eroded market confidence, contributing to the bearish sentiment.
Institutional Players Maintain Bullish Stance
Despite the market downturn, major institutional players continue to demonstrate strong conviction. Strategy (formerly MicroStrategy) has acquired 20,365 BTC worth approximately $2 billion at an average price of $97,514. The company now holds a total of 499,096 BTC valued at $33.1 billion and plans to invest an additional $42 billion in Bitcoin over the next three years through their “21/21” initiative.
BlackRock has increased its stake in Strategy to 5%, while Japanese investment firm Metaplanet added 135 BTC worth $13 million to their holdings. Even El Salvador maintained its Bitcoin accumulation strategy, purchasing 7 BTC at $94,050 per coin.
Technical Analysis: Critical Support Levels Under Threat
BTC/USD is currently trading at $89,100, down 7% in the last 24 hours. The breakdown below the crucial support at $92,300 has triggered aggressive selling, pushing prices to test lower support levels. Key technical levels to watch:
- Immediate Resistance: $92,300
- Secondary Resistance: $94,500 (50 EMA)
- Critical Support: $86,400
- Lower Support Zones: $83,900 and $81,500
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Source: Bitcoinist