Bitcoin's value has plummeted to levels not seen since November 2024, as the cryptocurrency market faces a tumultuous period with over $800 million in liquidations. The drop below $73,000 marks a new 15-month low, intensifying concerns among traders and investors.
Following a second dip below $73,000 after the opening of Wall Street, Bitcoin continued its downward trajectory. Data from TradingView indicated that the digital currency's price slipped below $72,500 on Bitstamp, surpassing the previous day’s lows.
Across the broader market, macroeconomic assets, including precious metals, faltered. Gold, unable to maintain support at $5,000, and U.S. stocks opened in negative territory. Notably, silver experienced a dramatic decline, losing nearly $9 per ounce in just three hours, with gold prices dropping by $220 per ounce in the same timeframe.
QCP Capital, in its latest market update, noted the persistent volatility in the cryptocurrency space. The company highlighted that the temporary avoidance of a U.S. government shutdown has eased some immediate market pressures. However, fiscal uncertainties loom, with homeland security funding only assured until February 13.
Bitcoin traders remain cautious, bracing for possible further declines. With the $50,000 mark emerging as a potential target, market sentiment appears tense. Analyst Roman expressed concern over a potential drop towards $50,000, especially if Bitcoin closes below $74,000. High trading volumes during downturns suggest ongoing bear market conditions.
Trader CJ also anticipated a further price reduction, eyeing the range between $59,000 and $65,000 as significant areas of interest, depending on whether a relief bounce occurs first.
Previously, Cointelegraph identified the 200-week exponential moving average, near $68,000, as a potential support level. CoinGlass data revealed that long positions are being liquidated as prices fall, with total 24-hour crypto liquidations exceeding $800 million.
As the market grapples with these challenges, traders and investors are urged to proceed with caution and conduct thorough research before making any decisions.