Bitcoin Drops to $84K as Market Correction Fears Grow; Ethereum Allocates $220M DAO Funds to Security
Bitcoin fell to about $84,366 amid a wider market correction, driven by weakness in US equities and disappointing Federal Reserve expectations. BTC lost over 5% during a sharp move that breached $86,000, while many altcoins declined more than 7%. Crypto derivatives saw heavy pain: roughly $421 million in long positions were liquidated in one hour and nearly $700 million over 24 hours. Technical support levels cited include $84,300, $83,700, $80,800 and a possible deeper bottom near $76,000 if selling continues. Separately, remaining unclaimed funds from the 2016 DAO hack are being repurposed into TheDAO Security Fund — a $220 million donation intended to finance Ethereum security research and harden protocol defenses. Organizer Griff Green said the fund will channel significant resources to security researchers and governance efforts. The article notes typical crypto volatility and urges readers to perform their own research.
Bearish
The news is bearish for crypto markets in the short term. Bitcoin’s >5% drop, broad altcoin losses and large derivative liquidations (≈$700M/24h) increase volatility and reduce risk appetite, often prompting further selling and stop-run moves toward lower technical supports ($84.3k, $83.7k, $80.8k and potentially $76k). Weakness linked to US equity declines and Fed-driven sentiment typically pressures crypto as a risk-on asset. The Ethereum DAO fund news is constructive for Ethereum’s long-term security narrative but is unlikely to offset immediate market-wide selling. Historically, large liquidation events amplify downtrends (e.g., 2021 and 2022 margin cascades). Traders should expect elevated volatility, consider tighter risk controls, reduce leverage, and watch spot support levels and funding rates. Over the medium-to-long term, targeted security funding for Ethereum is a neutral-to-slightly bullish development for ETH fundamentals, but it does not negate macro-driven price pressure.