Bitcoin has fallen back towards US$84,000, extending its retreat from recent highs as a stronger US dollar, elevated Treasury yields and renewed interest rate concerns weigh on cryptocurrency markets. The world's largest digital asset was trading around US$84,205 at the latest check, down about 1.5% on the session after moving between US$83,702 and US$86,634.
Former BitMEX CEO Arthur Hayes believes the AI investment mania will be a major positive catalyst for Bitcoin if it ends up crashing down.
Was the US government behind this major liquidation event?
The daily outflow was the largest since March 1, while Bitcoin held on centralized exchanges stood at about 6.50% of total supply.
Bitcoin fell $1,600 in about 15 minutes, while Ether and XRP also declined as leveraged long positions were liquidated.
Bitcoin remained under pressure on Wednesday, briefly trading below $84,000 as increased profit-taking and less supportive macroeconomic conditions slowed its bullish momentum. BTC changed hands around $84,151, dropping below the immediate support at $85,000 after struggling to regain its recent high near $87,000. Institutional signals were mixed. US spot Bitcoin exchange-traded funds recorded modest withdrawals on Monday, while Strategy continued adding Bitcoin to its corporate treasury. Meanwhile, rising Treasury yields and a stronger US dollar presented additional obstacles to a sustained recovery. Bitcoin ETF outflows contrast with Strategy's latest purchase US spot Bitcoin ETFs registered $89.90 million in net outflows on Monday, followed by another $3 million on Tuesday, according to SoSoValue.
U.S. spot Bitcoin ETFs posted a net inflow on Oct. 6, while Ethereum ETFs recorded their sixth consecutive day of net outflows.
Blackrock IBIT led individual funds with $122 million in inflows, while the Grayscale Bitcoin Mini Trust ETF posted the largest outflow.
Bitcoin price fell below $84,000 after four Hyperliquid wallets opened 40x BTC shorts, but timing alone does not prove causation or insider trading.
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Bitcoin touched roughly $83,840 during Asian trading as Brent crude climbed nearly 1% and the dollar strengthened amid heightened Strait of Hormuz tensions.
Bitcoin briefly broke under the level analysts flagged as the point where sellers take over. Oil and the dollar both climbed.