A sudden drop in crypto prices follows recent highs, sparking concerns over market leverage and future recovery.
Bitcoin Dives Below $90K Amid Market Panic
Bitcoin’s price has plunged below $90,000, erasing significant gains from its recent rally. This correction wiped out $200 billion from the $3.2 trillion crypto market, raising concerns about further drops.
Market Experts Warn of Leverage Risks
Galaxy Digital CEO Michael Novogratz warned that excessive leverage in the crypto ecosystem could deepen the correction.
“The crypto community is levered to the gills, and so there will be a correction,” Novogratz stated.
He predicted Bitcoin’s price could fall to $80,000 but is unlikely to dip further. Novogratz remains optimistic, suggesting that Bitcoin will eventually surpass the $100,000 mark due to its limited supply and growing institutional adoption.
I still a not sure who is selling so much $BTC! I do know that most of the buyers in the past 2 weeks are HODLrs and not traders. Usually when a market hits a big round number it corrects. Will this time be different?
Trump’s Impact on Crypto Sentiment
The Trump administration’s pro-crypto stance has bolstered market optimism.
“The entire cabinet almost owns bitcoin and are proponents of digital assets,” Novogratz added.
However, traders remain cautious as they navigate ongoing price fluctuations and macroeconomic factors.
Bearish Indicators Highlight Potential Drop
Analysts have flagged technical support levels as critical markers for Bitcoin’s recovery:
- $91,800: A 76.4% retracement of the recent rally.
- $87,000: A potential next target if bearish momentum persists.
According to Alex Kuptsikevich, chief market analyst at FxPro:
Geopolitical pullbacks and profit-taking have extended Bitcoin’s corrective pullback to a fourth consecutive day.
This analysis underscores the volatile nature of the crypto market, where sudden shifts can significantly impact sentiment and prices.
Outlook and Recovery Hopes
While short-term corrections pose challenges, experts highlight Bitcoin’s resilience. Limited supply and institutional interest provide a foundation for potential recovery.
Novogratz reiterated his long-term optimism:
We’re in price discovery… I wouldn’t be surprised if we go much higher after this correction.
Investors and traders will closely monitor upcoming support levels to gauge the market’s next move.
Disclaimer:
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