Bitcoin Drops Below $90K as Leveraged Liquidations Hit $200M
Bitcoin has fallen below $90,000 following a wave of leveraged liquidations totaling $200 million across the crypto market. This has led analysts to warn of a potential further decline to $76,000 if key support levels are not held.
Market Volatility
The crypto market experienced significant volatility as over $200 million in leveraged positions were liquidated in just four hours. Bitcoin dropped by more than 3%, while Ethereum fell by over 4%. The total market capitalization of cryptocurrencies decreased by over $100 billion in a single day.
Options Expiry Impact
This sell‑off occurred alongside a major options expiry event, with $3.357 billion worth of Bitcoin options and $668 million worth of Ethereum options expiring. Traders had been closely watching these events, which may have contributed to the market’s instability.
Trader Sentiment
Prominent trader TraderThanos expressed a bearish outlook, noting that Bitcoin’s price has fallen below key moving averages for the first time since mid‑2023. If the price remains below these levels, it could drop to the $72,000‑$76,000 range.
Prediction Markets
The odds of Bitcoin hitting $80,000 by the end of the year have increased to over 40% on prediction markets like Polymarket. Analysts emphasize that Bitcoin must hold the $84,000 support level to avoid a deeper correction. If this level is breached, the next major support is seen at $76,000.
Alternative Investment: Bitcoin Hyper
Despite the market downturn, there is growing interest in alternative investments. Bitcoin Hyper, a project aimed at improving transaction speeds and reducing fees on the Bitcoin blockchain, has raised over $29 million in its presale. Investors are drawn to its potential for high returns and innovative solutions for decentralized applications.
Outlook
As the crypto market faces uncertainty, all eyes are on whether Bitcoin can defend key support levels or if further declines are on the horizon.
