Bitcoin trades near $83,700 as of writing, down more than 6% over the last 24 hours after breaking below the $85,000 level during the New York session. The move marks Bitcoin’s sharpest daily decline since early December and wipes out over 5% of its market value.
Why did sellers step in so aggressively?
Sharp Selloff Hits the Crypto Market
Bitcoin slipped to an intraday low near $83,388, its weakest level since December 1, according to CoinCodex data, The drop quickly spread across the broader crypto market. Ethereum, BNB, XRP, and Solana all posted losses exceeding 5% over the same period, reflecting synchronized risk-off behavior.
Source: X
Liquidations accelerated as prices fell. Traders saw nearly $200 million in crypto positions wiped out within a single hour. Total liquidations over the past 24 hours climbed above $800 million, with long positions accounting for roughly $696 million. One BTC-USD position on decentralized exchange Hyperliquid reached $31.6 million, marking the largest single liquidation during the move.
U.S. Stocks Add Pressure
The crypto decline followed a broad selloff in U.S. equities. The Nasdaq Composite dropped about 2%, while the S&P 500 slid nearly 1% during Thursday’s session. A steep 12% plunge in Microsoft shares weighed heavily on major indices, even after the company beat earnings expectations.
Market data continues to show that Bitcoin tracks technology stocks more closely during downturns. As selling pressure intensified in equities, crypto traders reacted quickly. Was this another reminder that Bitcoin still trades like a high-beta risk asset?
Gold and Silver Also Drop Over 8% and 12% Respectively
Gold and silver also came under heavy pressure. After touching record highs earlier in the week, both metals reversed sharply as selling spread across asset classes. Gold prices fell nearly 9% at the lows, marking the worst intraday drop since October 2025, while silver slid about 12%.
The move followed a broad decline in U.S. equities, according to Bloomberg data. Traders locked in profits after a steep rally since the start of 2025, while leveraged positions unwound alongside stocks and crypto. Rather than a clean rotation into safe havens, markets showed classic stress behavior as investors raised cash and trimmed exposure across risk and defensive assets alike.
Liquidity Signals Flash Warning Signs
On-chain indicators point to tightening conditions. The Coinbase Premium Index fell to around -0.169%, signaling heavier selling during U.S. trading hours compared with global markets. The index turned positive only twice in January, suggesting ongoing deleveraging by institutions and large investors.
Source: CryptoQuant
Stablecoin data adds another layer of concern. The combined market cap of the top 12 stablecoins contracted by $2.24 billion recently, with a peak-to-trough decline of $5.6 billion. Rather than rotating into stablecoins to buy dips, capital appears to exit the crypto ecosystem entirely. Without fresh liquidity, rebounds tend to lose strength.
Key Technical Levels Come Into View
From a technical perspective, Bitcoin now tests support near $84,000. Analysts note that a loss of this level opens the door to a move toward $80,000. Some chart patterns point even lower. Measured targets from a broken continuation structure align near $75,000.
Source: TradingView Via X
Short-term upside faces hurdles. Daily closes need to reclaim the $84,600 area to ease immediate downside pressure. Until that happens, price action remains under stress.
As markets digest equity volatility, tightening liquidity, and shifting capital flows, Bitcoin traders now focus on one question. Can buyers defend key support levels, or does the path lower remain open?
