Bitcoin fell sharply over the past 24 hours, slipping below the $84,000 threshold as intensifying selloffs across digital assets deepened risk-off sentiment in the cryptocurrency market.
The flagship cryptocurrency declined by 5.54% to trade around $83,600, underperforming the broader crypto market, which posted an average decline of 5.04% over the same period. The selloff erased significant value across the sector, pushing total global cryptocurrency market capitalisation below the $3 trillion mark.
Ethereum and several major altcoins recorded steep losses, amplifying the downturn. Market data showed a surge in trading activity, with Bitcoin’s 24-hour trading volume jumping by 61% to $64.64 billion, even as the combined market value of all digital assets dropped to approximately $2.86 trillion.
The downward move was fueled by worsening investor sentiment and a large-scale unwinding of leveraged positions. Bitcoin alone saw more than $431 million in long-position liquidations within a 24-hour window, adding to selling pressure.
From a technical standpoint, Bitcoin breached the critical $85,000 support level, a move widely interpreted by analysts as confirmation of a bearish trend. The breakdown triggered algorithmic trades and stop-loss orders, accelerating the price decline.
Market volatility was further compounded by political and macroeconomic uncertainty in the United States. Investors are bracing for an announcement from President Donald Trump regarding the appointment of a new Federal Reserve Chair next week, a development that has unsettled expectations around future monetary policy. The uncertainty comes amid an ongoing criminal probe involving current Fed Chair Jerome Powell.
Risk assets across global markets reacted negatively to the uncertainty, with the Nasdaq experiencing a sharp selloff before staging a modest rebound. Bitcoin continued to trade in close correlation with equities, reinforcing its classification as a risk-on asset during periods of market stress.
Trading data indicates that the decline extends an existing bearish trend, with Bitcoin now down approximately 6% over the past week. Analysts attribute part of the pressure to increased selling by large holders, or “whales,” against the backdrop of rising geopolitical tensions.
On-chain metrics and social sentiment data showed heightened whale activity early Friday. Notably, a single transfer involving 10,329 BTC—valued at roughly $1.2 billion—was sent to spot exchanges.
Market analysts noted that large inflows of Bitcoin to exchanges are often a precursor to selling activity, as major holders move assets from cold storage to liquidate positions. Such flows increase immediate sell-side liquidity and can overwhelm existing buy orders.
According to analysts, when whales distribute large volumes, it often signals waning confidence among influential investors, a signal that can trigger panic selling among retail traders and further depress prices.
Market participants are now watching exchange net flow data for signs of a reversal, which would suggest that large holders are moving Bitcoin back into long-term storage—a development that could help stabilize prices.
Liquidation-driven selling has created a negative feedback loop, as falling prices trigger additional forced sell-offs. With the Relative Strength Index (RSI) currently at 34.4, analysts note that Bitcoin is not yet in oversold territory, leaving room for further downside.
The next key technical support lies near the recent swing low of $83,250. A sustained hold above this level will be crucial to prevent a deeper slide toward the psychologically significant $80,000 mark.
