Bitcoin Plunges Below $85K as Stocks and Metals Sell Off
Bitcoin tumbled below $85,000 to around $83,700, down more than 6% in 24 hours after an intraday low near $83,388. The move triggered roughly $800 million in crypto liquidations over 24 hours, with about $696 million coming from long positions; the largest single liquidation was a $31.6 million BTC-USD position on Hyperliquid. The decline was correlated with a broad selloff in U.S. equities — Nasdaq fell ~2% and the S&P 500 slipped nearly 1% following a 12% drop in Microsoft shares — and synchronized losses across major altcoins including ETH, BNB, XRP and SOL (all >5% down). Gold and silver also reversed from recent highs, falling roughly 9% and 12% at intraday lows, as traders took profits and deleveraged across assets. On-chain signals showed tightening liquidity: Coinbase premium turned negative (~-0.169%) and the top 12 stablecoins’ combined market cap contracted by $2.24 billion (peak-to-trough $5.6 billion), suggesting capital left the crypto ecosystem rather than rotating into stablecoins. Technically, Bitcoin faces support near $84,000; a loss could open a drop toward $80,000 or measured targets near $75,000. Short-term upside requires daily closes above ~$84,600 to relieve immediate downside pressure. Key takeaways for traders: rising liquidations and negative Coinbase premium indicate ongoing deleveraging; cross-asset volatility (tech stocks, metals) can amplify moves in BTC; watch $84k-$84.6k for support/resume and $80k–$75k as potential downside targets.
Bearish
The article describes a sharp, liquidity-driven drop in Bitcoin tied to a broader equity selloff and deleveraging across markets. Key bearish signals: (1) large short-term liquidations (~$800M total, ~$696M longs) which remove leverage and reduce immediate buying power; (2) negative Coinbase premium indicating heavier U.S. selling and institutional deleveraging; (3) contraction in top stablecoin market caps implying capital exiting crypto rather than rotating into cash-equivalents within the ecosystem; (4) correlated weakness with tech stocks and precious metals, showing cross-asset stress rather than idiosyncratic BTC weakness. Technically, BTC sits on critical support near $84k; failure would likely accelerate selling toward $80k and measured targets near $75k. Short-term outlook is bearish as liquidity dries up and traders de-risk. Medium-term impact depends on whether equity volatility eases and stablecoin supply stabilizes; if those reverse, BTC could recover as deleveraging abates. Historical parallels: 2021–2022 and several 2024–2025 episodes where equity drawdowns and concentrated long liquidations precipitated multi-percent BTC drops—initial sharp declines were followed by choppy consolidation before any sustainable recovery, especially when stablecoin inflows remained weak. Traders should reduce directional leverage, monitor liquidation heatmaps, Coinbase premium, stablecoin flows, and equity market action; watch $84k–$84.6k (support/relief) and $80k–$75k (risk management targets).