Bitcoin Price Falls to $91,000 Amid Tariffs and Panic Selling
Bitcoin (BTC) dropped to $91,000 early Monday due to unfavorable macroeconomic conditions, including new US tariffs.
Key points:
- Market analysts are monitoring for signs of price reversal or further decline.
- A CryptoQuant analysis indicates panic selling as BTC falls below critical support levels.
- Institutional investors continue to accumulate BTC despite retail selloffs, suggesting strategic buying during the dip.
Market Dynamics and Institutional Activity
TraderOasis highlights:
- Open interest has decreased significantly, indicating forced liquidations among leveraged traders.
- Funding rates drop point to increased short positions and bearish sentiment.
- Larger investors, or "whales," appear to be absorbing discounted BTC amidst retail liquidations.
Rising Liquidations and Signs of Recovery
Mignolet from CryptoQuant noted:
- The current liquidation volume is the highest since September 2023, triggered by the recent price drop.
- This event is compared to past market shocks like the FTX collapse.
- Despite liquidations, the Coinbase Premium Gap suggests institutional buying activity is strong.
Overall, the market remains volatile but shows potential for recovery as institutional players buy into the dip.