Bitcoin Tumbles Below $83,000 as Market Sentiment Sours, Weekend Sell-Off Weighs
Bitcoin (BTC) has experienced a significant price correction, trading around $82,300 at the time of writing, representing over a 4% decline in the past 24 hours and continuing a trend of Sunday sell-offs that have characterized recent market movements.
Trump’s Economic Policies Spark Crypto Market Jitters
The latest admission by President Donald Trump that his economic policies might momentarily cause “a little disturbance” has contributed to market concern. Emphasizing the need of longer-term economic planning, Trump compared the United States’ quarterly emphasis to China’s “100-year perspective” on a Fox News Sunday appearance.
Some analysts have labeled this strategy “Volckering,” equating it with former Federal Reserve Chairman Paul Volcker’s deliberate but required recession in the early 1980s meant to lower inflation. The analogy implies that the present government is ready to tolerate temporary financial suffering in order to achieve long-term stability and development.
Strategic Bitcoin Reserve Takes Shape Amid Price Volatility
President Trump signed an executive order last week creating a federal Strategic Bitcoin Reserve, first funded with Bitcoin seized from criminal forfeues. Although the declaration was seen as momentous for the acceptance of cryptocurrencies, it fell short of market expectations regarding government direct acquisition of Bitcoin from the market.
Strategy’s founder, Michael Saylor, has suggested that, by “consistent, programmatic daily purchases,” the U.S. government should acquire between 5–25% of Bitcoin’s entire supply by 2035. Saylor claims that by 2045 this kind of approach may provide the U.S. Treasury between $16 trillion and $81 trillion.
Bitcoin’s Global Adoption Remains in Early Stages
Although Bitcoin is becoming more and more popular, a recent River study shows that just 4% of the world’s population already owns it—with largest proportion in the United States. According to the studies, Bitcoin has only attained 3% of its highest possible acceptance rate.
While Africa lags at just 1.6%, North America dominates world adoption rates. Lack of financial and technical knowledge, ongoing misunderstandings about cryptocurrencies, and great price volatility constitute obstacles to more general acceptance.
BTC/USD Technical Analysis Points to Further Downside Risk
Several technical indicators suggest Bitcoin BTC/USD could face additional selling pressure in the near term:
- The cryptocurrency is currently challenging its 200-day simple moving average (SMA) for the first time since October, a critical support level.
- Popular trader Mikybull Crypto predicts Bitcoin may test its 50-week SMA, which has not been breached on a weekly close since March 2023.
- The “Lowest Price Forward” tool, which has historically provided accurate price floors, gives 95% certainty that Bitcoin will not drop below $69,000 – coincidentally, the 2021 all-time high.
Exchange order books reveal significant liquidation levels, with long positions facing pressure around $84,300 and shorts accumulating near $86,500-87,000. Data from CoinGlass indicates that aggregate 24-hour crypto liquidations have exceeded $300 million.
Bitcoin Price Prediction
With Bitcoin down nearly 10% from its recent high above $90,000, market participants are closely watching key support levels. The $80,000 psychological barrier could provide temporary relief, but further weakness may target the February low of $78,000.
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