Bitcoin News Today: $1.59B Liquidated as BTC Drops to $86K – What’s Next?

The post Bitcoin News Today: $1.59B Liquidated as BTC Drops to $86K – What’s Next? appeared first on Coinpedia Fintech News

Bitcoin’s price crash has triggered massive liquidations, wiping out nearly $1.59 billion from the market in just 24 hours. Around 390,000 traders faced losses, with long positions making up 90% of the liquidations. One major loss occurred on Justin Sun’s exchange, HTX, where a single trader lost $39.62 million. As BTC dropped to $86,000, its lowest since November, analysts debated whether this was a temporary dip or a sign of a bigger downturn. The drop is due to increased ETF outflows, investor worries about Trump’s EU Tariff threat, and the major Bybit crypto hack which scattered the rally hopes.

Why Is Bitcoin Dropping?

Bitcoin just recorded its biggest three-day price drop since the FTX collapse in 2022 , plunging 12.6% between Monday and Wednesday. Bitcoin’s recent decline is largely tied to external factors. Analysts point to the weakening demand from institutional investors and the tightening of fiat liquidity, making it harder for new money to flow into the crypto space. The lack of immediate progress on crypto-related policies, particularly in the U.S., has also disappointed investors.

Adding to the pressure, the Nasdaq index has been struggling, dragging down risk assets like Bitcoin. Meanwhile, Noelle Acheson, author of Crypto is Macro Now, warned that rising inflation expectations and potential tariff hikes from the Trump administration are further dampening market sentiment.

The lowest it can Go

With Bitcoin breaking below its long-standing range of $90,000 to $110,000, analysts predict further downside. Markus Thielen, founder of 10x Research, suggests that BTC could dip as low as $72,000–$74,000 before finding support. Another key level to watch is $82,000, identified as a demand zone based on short-term holder data. Historically, Bitcoin doesn’t stay below this price for long during bull markets, but in bear cycles, it tends to linger.

Willy Woo highlights that Bitcoin’s drop to $82K was driven by its correlation with stocks, not major investor activity. He sees $75K as a key target but notes BTC is oversold, making a rebound likely.

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Can Bitcoin Bounce Back?

Despite the bearish sentiment, some believe Bitcoin could soon find its footing . Analysts highlight that Bitcoin’s dual nature as both a risk asset and a store of value could attract fresh buyers. If BTC stabilizes around $82,000, a rebound may follow. Regulatory developments could also play a crucial role in shaping the market’s direction. A recent U.S. Senate hearing on digital asset regulations raised hopes for clearer guidelines, which could encourage institutional investment and provide a much-needed confidence boost. Matt Mena from 21 Shares believes that if the U.S. provides definitive guidance on stablecoins and digital assets, it could trigger a new wave of institutional capital inflows.

So if you are panicking about BTC dropping, remember historically such drops are part of BTC’s price cycle before a major pump.

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