Bitcoin fell to a two-month low amid uncertainty over Fed leadership, triggering a broader crypto sell-off. Ethereum and major altcoins also declined sharply as liquidations surged and investors turned risk-averse amid weak tech earnings and macroeconomic concerns.
Bitcoin slipped to its two-month low level of $82,000 on Friday as uncertainty around Fed chairmanship has stirred speculation of a more hawkish outcome than some had hoped for. The cryptocurrency was trading at the $82,832 level.
In the past 24 hours, Bitcoin went down by 6%, whereas Ethereum went down by 7% to trade at the $2,747 mark. Among the major altcoins, BNB, XRP, Solana, Tron, Dogecoin, Cardano and Hyperliquid went down nearly 7% in the same period.
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The global crypto market capitalisation edged down 5.56% to $2.82 trillion, according to CoinMarketCap.
Riya Sehgal, Research Analyst, Delta Exchange, said the crypto market saw one of its sharpest corrections in months, with over $1.7 billion in leveraged positions liquidated in 24 hours, and the decline followed a broader global risk-off move triggered by weak tech earnings.
Sehgal added that while short-term momentum stays bearish, if BTC and ETH hold key supports near $80,000 and $2,700, the market may stabilise as volatility cools.
Ethereum and Bitcoin fell over 7% in the past week, whereas the major altcoins such as BNB, XRP, Solana, Tron, Dogecoin and Cardano fell over 10%, and Hyperliquid was up by 35%.
Nischal Shetty, Founder, WazirX, said this drop was largely driven by liquidation of excess leverage, with over $777 million in long positions liquidated in just one hour, as this shows a broader reaction to macroeconomic developments which have been triggering outsized moves in risk-on assets.
Shetty further said that uncertainty around Fed chairmanship has stirred speculation of a more hawkish outcome than some had hoped for, pushing investors into a risk-off mindset and adding pressure on crypto prices.
The immediate trigger was a decisive break below the $85,000 support zone. This level had acted as a short-term floor through much of mid-January.
BTC slipped below the $85k level in an already fragile market environment, where escalating US-Iran tensions and increasing probability of a US government shutdown triggered a broad risk-off response.
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Currently trading around $81,000, BTC presents an attractive opportunity for long-term investors, where gradual, disciplined accumulation can help achieve better risk-adjusted returns over time. However, traders should closely watch the $80,600 support level, as a break below it could trigger further downward pressure.
