Bitcoin Price Analysis: BTC Holds $83,000 As Precious Metals Plummet After Mega Rally
Bitcoin (BTC) stemmed its decline and reclaimed the $83,000 mark after coming dangerously close to slipping below $80,000. The flagship cryptocurrency fell to a low of $81,000 on Friday before settling at $84,000. However, price action remained bearish on Saturday, with BTC trading around $82,850.
Meanwhile, gold and silver plummeted on Friday after a record-breaking rally, with gold dropping by more than 10% and silver falling by over 30%.
Investors Pull Nearly $2B From Bitcoin And Ethereum ETFs
Investors pulled nearly $2 billion from spot Bitcoin and Ethereum ETFs over the past five trading days as market sentiment remained weak. Spot Bitcoin ETFs shed around $1.49 billion between Monday and Friday, while Ethereum ETFs saw net outflows of around $327 million. The outflows come amid a substantial decline in the price of both assets, with BTC crashing to a low of $81,000 on Friday while ETH slipped below $2,700.
However, Bloomberg ETF analyst Eric Balchunas called the recent negativity around BTC’s price action compared to gold and silver “short-sighted,” stating,
Bitcoin spanked everything so bad in ’23 and ’24. Those other assets still haven’t caught up, even after having their greatest year ever, and BTC is in a coma. So it had to take a breather so the actual narrative could catch up to the price.
Gold surged to a new record of $5,608, while silver rallied to $121. However, the previous metal rally finally broke on Friday as gold fell 8%, while silver plunged around 27%.
Bitcoin (BTC) Out Of World’s Top Ten Assets
Bitcoin’s drop this week has cost it its place among the world’s top ten assets by market capitalization. The removal highlights the recent difficulties the asset faces as the cryptocurrency market continues to grapple with the effects of the industry’s largest forced liquidation on record. The flagship cryptocurrency’s market capitalization has slipped to $1.65 trillion, pushing it to 11th globally, just behind Saudi Aramco and below Taiwan Semiconductor Manufacturing Co. (TSMC).
On the other hand, gold has surged to the top of the global markets thanks to its record rally. Gold’s rally was accompanied by staggering gains in gold futures, as highlighted by data from cryptocurrency exchange MEXC. Bitcoin’s market capitalization peaked at around $2.5 trillion in October as it surged to a record price level of $126,000. The flagship cryptocurrency’s latest selloff was due to $1.6 billion in long liquidations as it fell from $90,000 to a low of $81,000 on Coinbase.
Kevin Warsh Nominates Kevin Warsh As Next Federal Reserve Chair
US President Donald Trump has nominated Kevin Warsh as the next chair of the Federal Reserve. According to reports, Trump met Warsh early on Friday, with sources stating the president was very impressed by Warsh. The odds of Warsh being nominated as the next Fed Chair surged to 95% on Polymarket, while Rick Rieder, the former frontrunner, tanked to just 3.4%. Analysts expect Warsh to push for fiscal restraint, lower inflation, and exiting quantitative easing.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) plunged to a low of $81,000 on Friday as markets turned red, with even gold and silver unable to escape selling pressure. The flagship cryptocurrency steadied itself after crashing to a nine-month low and reclaimed the $83,000 mark. The 10% correction, spread over Wednesday and Thursday, saw BTC come dangerously close to slipping below the $80,000 mark. The correction was the result of overly cautious traders after significant ETF outflows, rising geopolitical tensions, and market uncertainty.
Besides geopolitical and market factors, the threat from quantum computers has added to investor anxiety. Coinbase recently announced an independent advisory board to evaluate the risks associated with quantum computing, with plans to publish its study by 2027. The discussion of the quantum threat intensified after Jeffries removed Bitcoin from its flagship portfolio, citing long-term security concerns.
Spot Bitcoin ETFs also registered heavy outflows over the past week. The ETFs started the week with an inflow of $6.80 million. However, Tuesday saw outflows of $146 million, followed by $19.60 million on Wednesday. Weekly outflows peaked on Thursday as investors pulled $817 million, while Friday saw an outflow of $509 million.
BTC ended the previous weekend in the red, dropping 1.55% to $93,633. Sellers retained control on Monday as the price fell 1.15% to $92,559. Selling pressure intensified on Tuesday as BTC fell nearly 5%, slipping below $90,000 to $88,310. Despite the overwhelming bearish sentiment, the price recovered on Wednesday, rising 1.19% to $89,363. BTC registered a marginal increase on Thursday, moving to $89,463. BTC experienced considerable volatility on Friday as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as the price registered a marginal increase to $89,474.
Source: TradingView
Selling pressure returned over the weekend, and BTC fell 0.44% to $89,092. Selling pressure intensified on Sunday as the price fell nearly 3% to $86,561. Despite the overwhelming selling pressure, BTC recovered on Monday, rising almost 2% to $88,250. Buyers retained control on Tuesday with the price crossing $89,000 to $89,250, up nearly 1%. BTC experienced volatility on Wednesday, briefly crossing $90,000 before settling at $89,162. Markets crashed on Thursday, and BTC fell over 5% to a low of $83,216 before settling at $84,513. Selling pressure persisted on Friday as the price plunged below key support levels to $81,000 before moving to $84,110. BTC is down nearly 2% during the ongoing session, trading around $82,717.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.