Bitcoin Price Analysis: BTC Plunges to Nine-Month Low As Geopolitical Tensions, Market Uncertainty Spike
Bitcoin (BTC) plunged to a nine-month low, tumbling nearly 7% as the cryptocurrency market registered another selloff, triggered by escalating geopolitical and trade tensions amid reports that President Trump will nominate former Federal Reserve Board member Kevin Warsh to replace current Fed Chair Jerome Powell once his term expires.
Bitcoin prices reacted sharply to a mix of geopolitical tensions and declining liquidity, which impacted risk appetite. The cryptocurrency market capitalization fell over 5% with several tokens registering double-digit declines. Data from CoinGlass revealed $1.75 billion worth of liquidations over the past 24 hours, with long positions accounting for $1.6 billion.
Is One Entity Keeping Bitcoin (BTC) Price Below $90,000?
Keith Alan, co-founder of trading resource Material Indicators, believes Bitcoin is facing renewed attempts to manipulate its short-term price. Alan stated in a post on X,
FireCharts shows $BTC price is being suppressed by one entity using a liquidity herding strategy to push price lower, potentially to get their own bids filled, or possibly to keep price pinned in the lower end of this range before Friday’s options expiry.
Alan referred to one of Material Indicators’ proprietary trading tools and whale order volume for the analysis. Large entities are known to influence Bitcoin’s price action, using their liquidity to influence the market and trap smaller investors. Alan stated,
A significant amount of bid liquidity is concentrating in the $85k – $87.5k range to strengthen support, and potentially provide a foundation for a bounce before the Monthly Close.
Senate Agriculture Committee Advances Crypto Market Structure Bill
The US Senate Agriculture Committee advanced its version of the crypto market structure bill on Thursday after a brief markup session. Lawmakers considered several amendments during the session, none of which were passed. Democratic members raised concerns regarding ethics, regulatory oversight, and conflicts of interest. They also included a proposal to bar elected officials and representatives from owning digital assets. However, the proposal failed to garner support.
The agriculture committee voted 11-12 to advance the bill, clearing the path for consideration by the United States Senate at a later date. Supporters of the bill argue it will provide regulatory clarity for the digital asset sector, while critics warn it could significantly weaken investor protection.
Bitcoin (BTC) Drop Triggers Billions In Liquidations
Bitcoin’s (BTC) plunge to a nine-month low has triggered billions in liquidations over the past 24 hours as markets reacted to rising geopolitical tensions and renewed economic uncertainty after President Trump’s latest tariff threats. The flagship cryptocurrency fell to a low of $81,000 on Coinbase, the lowest since April. According to CoinGlass data, the downturn liquidated 270,000 traders in the past 24 hours, with total liquidations hitting $1.68 billion. Data also showed that a large chunk of liquidations were in Bitcoin and Ether.
Bitcoin’s substantial decline comes as the US deployed another warship to the Middle East amid rising tensions with Iran. Additionally, President Trump declared a national emergency and signed an executive order imposing tariffs on nations selling or providing oil to Cuba, triggering further market uncertainty. Jeff Mei, COO at the BTSE exchange, believes that disappointing tech revenue reports added to the selloff, stating,
Last night’s market dip had a clear correlation to Microsoft’s earnings flop.
Microsoft shares crashed 10% on Thursday after the tech giant reported record spending and slowing growth in cloud sales. Mei believes investors are worried about a broader pullback among AI-related tech stocks impacting the market. Tesla fell over 3% after outlining plans to double capital expenditure.
Investors are worried that a broader pullback in AI-related tech stocks will affect the market as a whole, and some are derisking their portfolios. We think the dip was relatively overblown as cryptocurrencies have already declined since October, and that Bitcoin and other cryptocurrencies remain at an attractive price with limited downside.
Meanwhile, the mood around crypto darkened as the Crypto Fear & Greed Index slipped back into “extreme fear” territory, with market sentiment plummeting. Liah Tran, senior market analyst at XS.com, stated that Bitcoin and cryptocurrencies are facing competition from traditional assets, such as gold.
As geopolitical uncertainty and policy-related risks intensify, markets tend to favor assets with a long-established role in risk hedging. Yet despite rate cuts, global liquidity, the factor with the greatest influence on crypto market performance remains tight, underscoring that interest rates are only one component of overall liquidity conditions. By contrast, gold historically benefits from a weakening US dollar.
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 its current level of $82,632.
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.