On Monday, Bitcoin experienced a sharp decline, dipping below $80,000 as the ongoing sell-off in traditional equities markets took a toll. Over the weekend, Bitcoin struggled under significant downward pressure, breaking through crucial support levels. As long positions were liquidated, market sentiment turned increasingly bearish, leaving analysts wondering whether the cryptocurrency has hit its lowest point or if further losses are on the horizon.
In the past 24 hours, Bitcoin has dropped by almost 4%, partly due to growing fears of a potential recession. These concerns were amplified by U.S. President Donald Trump, who left the door open for the possibility of an economic downturn. Meanwhile, major U.S. stocks and indexes are all experiencing losses.
According to Coinglass data, the crypto market has seen over $630 million in liquidations recently, with Bitcoin long positions accounting for $210 million of that amount. Ethereum long positions were hit with $88 million in liquidations, and $80 million in other digital assets were also wiped out.
The downturn began following President Trump’s signing of an Executive Order on Thursday, aimed at establishing a Strategic Bitcoin Reserve and creating a digital asset stockpile. The immediate price drop likely stemmed from investors’ disappointment when the order didn’t include plans to directly purchase Bitcoin with government funds.
While the order directs the U.S. Treasury and Commerce Departments to explore methods of acquiring Bitcoin that wouldn’t impact the national budget, it made clear that taxpayer money wouldn’t be used to buy Bitcoin directly. This decision has left investors uneasy.
The sharp decline in Bitcoin’s price has also been reflected in a key on-chain metric. Data from IntoTheBlock reveals that the number of large transactions has fallen from a peak of 25.86K to 17.29K, suggesting diminished interest from institutional investors (whales), which could contribute to further downward movement in the short term.
However, a market rebound could be possible if traders gain clearer insight into regulations or react to the broader effects of Trump’s trade tariffs, which have shaken global markets and put pressure on risk assets, including cryptocurrencies.
Bitcoin remains under heavy bearish pressure, struggling to stay above the crucial $80,000 mark. Currently priced at $79,329, representing a 4.1% drop over the past 24 hours, BTC is facing strong resistance as bears continue to defend against upward movement. The next potential support level for Bitcoin could be at $75,000, and if it falls below this level, a further decline toward $64,000 is possible.
However, if Bitcoin experiences a surge in buying interest, it could break through the current resistance and climb above the $80K threshold. In such a case, BTC may consolidate below the $90K mark as the market regains some stability.
