Bitcoin Drops 1.8% to $83,082.82 Amid Market Turmoil

Bitcoin's price has experienced a significant decline, falling below the $84,000 mark, which has raised concerns among investors and traders. The cryptocurrency market is currently under considerable pressure, with Bitcoin's value dropping to $83,082.82, a 1.8% decrease over the past 24 hours. This downturn is occurring against a backdrop of rising fear and uncertainty, exacerbated by recent global events. The Bitcoin Fear and Greed Index has plummeted to 25, indicating "Extreme Fear," a sharp contrast to the previous day's reading of 44 and last week's 40.

The market turmoil has led to substantial liquidations, with over $500 million in crypto positions being wiped out in the past 24 hours. A total of 177,402 traders were affected, resulting in losses amounting to $506.82 million. Liquidations occur when leveraged positions are forcefully closed due to adverse market movements. Interestingly, 63.94% of Bitcoin liquidations were short positions, suggesting that a significant number of traders were betting on a price decline. Ethereum (ETH) also saw considerable liquidations, with $91.11 million in losses, primarily from long positions.

The largest single liquidation involved an $11.97 million ETHUSDT long position on Binance. This wave of liquidations underscores the heightened volatility and risk in the crypto market. Analysts noted that the market sentiment remains subdued, with Bitcoin trading without conviction and Ethereum holding at the $1,800 support level. They cautioned that without a significant shift in macroeconomic conditions or a compelling catalyst, a meaningful reversal is unlikely.

The recent announcement by President Donald Trump of new tariffs on imports from 50 countries, including both BRICS nations and Western allies, has added to the market jitters. Dubbed a "Declaration of Economic Independence," this move has triggered uncertainty, even though it did not directly mention Bitcoin or cryptocurrencies. The macroeconomic landscape remains cloudy, and until there is clarity, the crypto markets are expected to continue experiencing volatility.

Bitcoin's price has fluctuated, briefly regaining the $84,000 mark before dropping again. Currently, it is trading below $82,000, far from its recent high of $110,000 around President Trump’s inauguration. The asset ended Thursday up 0.7% and pushed higher on Friday, climbing back above $84,000. However, it remains below the $87,000 level it held before Trump's speech. The market sentiment may be recovering, but the overall outlook remains cautious.

Bulls face multiple challenges, including macroeconomic headwinds, technical breakdowns, and elevated liquidations. The selling pressure on Bitcoin continues, with the price trading near $84,000 after a rejection from a key resistance level. The market's exhaustion is evident, with many coins down 90% year-to-date and steep drops occurring just this week. Until the macro picture clears up, expect more chop in crypto markets.