Bitcoin experienced significant price volatility on Wednesday morning in the US market, briefly surpassing the $90,000 mark before quickly dropping below $87,000 within minutes. This fluctuation highlights the fragile and unstable nature of the cryptocurrency market. The largest cryptocurrency’s price rose from around $87,000 to above $90,000 but soon settled between $86,500 and $87,500. At the time of reporting, Bitcoin was trading near $86,000, down 0.5% over the past 24 hours despite a more than 3% gain minutes earlier.
This sudden price change triggered liquidations exceeding $190 million in the crypto derivatives market, including $72 million in long positions and $121 million in short positions. Analysts attribute this volatility mainly to declines in AI-related technology stocks, with shares of Nvidia, Broadcom, and Oracle falling between 3% and 6%. Additionally, Blue Owl Capital’s withdrawal from Oracle’s $10 billion data center project intensified bearish sentiment in the tech sector, raising investor concerns. Experts believe that reduced liquidity and lower trading activity during the weekly holiday period contributed to increased price swings.
Technical analysts consider the $80,000 to $85,000 range a crucial support zone. Failure to maintain this level could lead to further declines, with some experts predicting prices may fall to $60,000 or $70,000. Conversely, other analysts foresee potential stabilization and new highs for Bitcoin in the future, especially as institutional investment grows and the regulatory environment improves. According to the Bitcoin Fear and Greed Index, the market is currently dominated by intense fear, often signaling buying opportunities at lower prices. Overall, Bitcoin’s market remains uncertain, though long-term prospects appear positive.
Source: bitcoinmagazine
