Stories
Bitcoin Plunges Below $84,000: What's Driving the Crypto Sell-Off?
- •Bitcoin fell sharply by 3.80% to $83,880, extending pressure across the broader cryptocurrency market, though it remains up over 10% for the week.
- •Rising US Treasury yields, with the 10-year yield hitting 5.11%, are a primary driver, making bonds more attractive and weighing on risk assets like crypto.
- •Despite the price pullback, institutional demand for US spot Bitcoin ETFs remains strong, with $714.7 million in inflows in the latest session and $1.7 billion over two days.
- •Analysts view the decline as a cooling-off after a sharp rally to an eight-month high of $87,359, rather than a confirmed reversal.
- •Geopolitical risks, including US-Iran tensions and rising Brent crude prices, are adding to market uncertainty and impacting risk appetite.
Key Questions Answered
Bitcoin fell sharply below $84,000 as stronger-than-expected US business activity pushed Treasury yields higher, with the 10-year yield hitting its highest level since 2007. This rise in borrowing costs, combined with higher energy prices, US-Iran geopolitical tensions, and weaker risk appetite, weighed heavily on digital assets and prompted liquidations.
Institutional demand remained relatively resilient despite the price pullback. US spot Bitcoin ETFs recorded about $714.7 million of inflows in the latest session, while Ether ETFs saw $162.2 million, with Mudrex reporting around $1.7 billion in Bitcoin ETF inflows over two days.
Analysts note mixed near-term levels depending on technical indicators. Immediate support is generally watched around the $83,500 to $84,000 zone, with lower supports near $81,000 to $82,500, while resistance levels span between $84,619 and $86,500.
