Why did Bitcoin plunge 6% overnight? It wiped out all of its post-election gains and fell back to a 7-week low!
Last night, Bitcoin was knocked straight down from above $80,000, briefly touching around $75,200. It fell more than 6%, giving back the entire rally since the midterm elections and hitting its lowest level since September 16.
The real cause wasn’t anything happening in crypto—it was the U.S. stock market crashing first. The Nasdaq plunged 4.2%, the S&P 500 fell 2.7%, and tech stocks were heavily sold off as risk assets collectively gave back their post-election gains. Oil prices also rebounded, with WTI climbing back above $90. The market is once again worried about the situation in the Middle East and the impact of Democratic policies on AI and tech.
My take: this downturn looks more like a spillover from macro sentiment than a problem with Bitcoin itself. The 50-week moving average is currently around $75,700 and is close to being breached. If U.S. stocks remain weak tonight, that support probably won’t hold, and prices could move lower to test the next levels down.
So I didn’t add to my position as prices fell. For now, I’m just keeping my exposure lighter and waiting to see if U.S. stocks stabilize. I’m guessing a lot of highly leveraged traders got liquidated in this move—nearly $850 million over 24 hours.
Are you holding on, or have you already reduced your position? #美股走弱，加密货币市场普遍承压
Last night, Bitcoin was knocked straight down from above $80,000, briefly touching around $75,200. It fell more than 6%, giving back the entire rally since the midterm elections and hitting its lowest level since September 16.
The real cause wasn’t anything happening in crypto—it was the U.S. stock market crashing first. The Nasdaq plunged 4.2%, the S&P 500 fell 2.7%, and tech stocks were heavily sold off as risk assets collectively gave back their post-election gains. Oil prices also rebounded, with WTI climbing back above $90. The market is once again worried about the situation in the Middle East and the impact of Democratic policies on AI and tech.
My take: this downturn looks more like a spillover from macro sentiment than a problem with Bitcoin itself. The 50-week moving average is currently around $75,700 and is close to being breached. If U.S. stocks remain weak tonight, that support probably won’t hold, and prices could move lower to test the next levels down.
So I didn’t add to my position as prices fell. For now, I’m just keeping my exposure lighter and waiting to see if U.S. stocks stabilize. I’m guessing a lot of highly leveraged traders got liquidated in this move—nearly $850 million over 24 hours.
Are you holding on, or have you already reduced your position? #美股走弱，加密货币市场普遍承压
