Bitcoin Crashes Below $83K as ETF Outflows Exceed $1 Billion After Fed Holds Rates
Leveraged traders face liquidation pressure as Wall Street pulls over $800M in single day
The cryptocurrency's slide marks a roughly 20% decline from January highs, erasing gains that followed optimism about pro-crypto policies from the Trump administration. Microsoft's weak guidance led the Nasdaq lower, contributing to broader tech and crypto weakness.
Gold's wild intraday swings, from record highs to sharp reversals, suggest investors are uncertain about which assets offer true safety amid escalating geopolitical tensions with Iran and ongoing trade policy uncertainty.
Bitcoin's correlation with tech stocks has reasserted itself in recent weeks, undermining narratives about crypto as digital gold or an uncorrelated asset class.
Analysis
Why This Matters
Bitcoin's failure to hold gains despite a crypto-friendly administration raises questions about what actually drives the asset. Its correlation with risk assets remains high.
Background
Bitcoin hit all-time highs in late 2025 amid Trump election optimism. The subsequent correction suggests fundamentals matter more than political sentiment.
What to Watch
The $80,000 level is key technical support. A break below could trigger further institutional selling.
Sources
- Bitcoin tumbles to 2026 low of 85200 as gold reverses big gains
- Bitcoin Plunge Could Get Much Worse as Death Cross Gains Power
- Binance pledges 1 billion fund to bitcoin as market tanks to months-low
- Bitcoin, ether extend declines as leverage unwind accelerates
- Bitcoin ETFs Shed 817M as BTC Hits Nine-Month Low
- Bitcoin slides below 83K as Wall Street pulls over 1B from crypto ETFs after Fed pause
- Bitcoin Traders See Nearly Even Odds for 69K Drop or 100K Recovery
- Bitcoin loses crucial 84K support: How low can BTC price go