Bitcoin plunged below $85,000 in a dramatic market downturn, as former President Donald Trump’s surprise Bitcoin Reserve executive order triggered widespread selling across cryptocurrency markets. The leading digital asset tumbled to an intraday low of $84,713, marking a sharp 6% decline from its recent $90,000 peak.
Market Impact and Trading Activity
The sell-off, which began immediately following Trump’s unexpected ‘Digital Fort Knox’ announcement, sent shockwaves through the crypto ecosystem. Trading volumes surged across major exchanges as investors rushed to adjust their positions.
Key Market Statistics:
- Bitcoin 24-hour trading volume: Up 127%
- Market capitalization loss: $98 billion
- Previous resistance level: $90,000
- Current support level: $84,500
Expert Analysis
“This sudden move demonstrates the market’s sensitivity to regulatory announcements, especially those involving major political figures,” says Sarah Chen, Chief Market Analyst at CryptoView Research. “The immediate reaction might be overdone, but it highlights the ongoing uncertainty around cryptocurrency regulation.”
Technical Outlook
The sharp decline has triggered several technical indicators, suggesting potential further downside. The RSI has dropped into oversold territory, while the 4-hour MACD shows increasing bearish momentum.
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Market Implications
The immediate market reaction suggests traders are concerned about potential regulatory implications of Trump’s order. However, some analysts view this as a temporary setback in Bitcoin’s broader upward trajectory.
Looking Ahead
Market participants will be closely monitoring further details of the executive order and its potential implementation timeline. The next key support level to watch is $82,000, while resistance remains at the previous high of $90,000.
Source: Bitcoin.com