Bitcoin’s Brutal Week Exposed: Why It’s Under Intense Pressure Now
Bitcoin’s Brutal Week Exposed: Why It’s Under Now
Bitcoin has taken a hard hit. After a
The Shocking Bitcoin Price Drop
Early Monday, Bitcoin traded around $77,900, up slightly by 1% from its lows. But don’t let that fool you. Over the past seven days, it fell about 12%. That’s over $200 billion gone from the total Bitcoin market cap.
The weekend was rough. Prices hit as low as $74,800 before bouncing a bit. This isn’t just a small dip. Bitcoin broke key support levels, signaling real trouble for bulls.
- Key Stats:
- Weekly loss: 12%
- Market cap wipeout: $200B+
- Weekend low: $74,876
- Current level: ~$77,900
Other coins like Ether and XRP followed suit, down sharply too. The whole crypto market felt the pain.
Risk-Off Mood Sweeps Global Markets
Bitcoin doesn’t move alone. It often follows stocks and other risk assets. Last Friday, U.S. stocks tanked, led by tech giants. Microsoft shares dropped 10% after weak earnings. This negativity spread to Europe and Asia on Monday.
Even safe havens cracked. Gold and silver extended losses. Silver had its worst day since 1980, down 30% on Friday. When everything sells off, Bitcoin gets hit hard.
Analysts point to thin weekend trading. Low liquidity means small sells turn into big drops. No major crypto news triggered this – just broader fear.
“Bitcoin’s drawdown coincided with a broader risk-off shift across global markets.” – Crypto research note
Forced Liquidations Fuel the Fire
Here’s where it gets ugly. Traders use leverage to bet big on Bitcoin. When prices fall, exchanges auto-sell these positions. That’s a liquidation.
Since Thursday, over $2 billion in long and short positions got wiped. Saturday alone saw $2.56 billion in crypto liquidations – the 10th biggest day ever.
This creates a cascade. One sell triggers more, pushing prices lower fast. It’s like dominoes in crypto markets.
Investor Money Flees Crypto
Sentiment is sour. Last week, crypto investment products saw $1.7 billion in outflows. That’s two weeks straight. Year-to-date, it’s $1 billion gone.
Investors are pulling back. Bitcoin is down 22% over the past year, despite hype as a volatility hedge. When safe assets like metals fail, crypto suffers more.
Geopolitical risks and tech stock woes add fuel. Precious metals were a last refuge – now they’re breaking too.
Fed Chair Change Looms Large
Rumors of Kevin Warsh replacing Jerome Powell as Fed chair are stirring uncertainty. Warsh’s views could mean tighter policy. Higher rates hurt risk assets like Bitcoin.
Markets hate unknowns. This news amps up the pressure on crypto.
What Do Experts Say About Bitcoin’s Future?
Opinions vary. Some see a bottom near $70,000. A hold there could signal rebound. But a break below might need big market shifts.
Others are bearish. One strategist eyes $40,000 this year. That’s a 70% drop from the all-time high of $126,000. Past cycles saw 70-80% crashes in “crypto winters.”
- Bullish View: Short-term bottom at $70K
- Bearish View: Possible $40K in 6-8 months
- Volatility Forecast: Prices from $75K to $200K+ expected this year
Bitcoin’s wild swings are normal. But this
Lessons for Bitcoin Investors
This drop reminds us: Crypto correlates with stocks now. Diversify. Watch liquidations and outflows for signals. And brace for Fed moves.
Long-term? Bitcoin’s story isn’t over. Past winters led to massive rallies. But short-term pain is real.
What’s Next for Bitcoin?
Watch $70,000 as key support. A bounce could spark recovery. But global risks linger. Stay tuned to stocks, Fed news, and on-chain data.
If you’re holding Bitcoin, this is a stress test. New buyers? Wait for stability. The pressure is on, but crypto rebounds strong.
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