Bitcoin Falls Back Below $88,000 as Market Shows Signs of Exhaustion
Bitcoin briefly rose above $90,000 before tumbling back below $88,000. The digital currency swung from around $87,000 to above $90,000 and then retreated to about $87,300, marking a 0.5% decline over 24 hours despite earlier gains exceeding 3%.
The downturn in bitcoin coincided with a drop in the Nasdaq, which fell more than 1%, as major tech stocks Nvidia, Broadcom, and Oracle declined between 3% and 6%, contributing to downward pressure on the crypto market.
Over $190 million in crypto-derivatives liquidations occurred within four hours, including $72 million in long positions and $121 million in shorts. This reflects heightened volatility and uncertain market sentiment.
Liquidity at the margin is shrinking, leading analysts to describe the market as exhausted. This exhaustion leaves prices susceptible to declines even from mild selling pressure.
Hunter Rogers, co-founder of the TeraHash bitcoin yield protocol, commented that the market's exhaustion means even minor selling can push prices lower.
A notable development impacting market confidence includes Blue Owl Capital reportedly withdrawing funding from a $10 billion Oracle data center project in Michigan.
Bitcoin now faces a critical juncture where holding the $80,000 to $85,000 range as support will be crucial in determining whether the cryptocurrency experiences fresh lows or rebounds in the near term.
