Bitcoin Retests $77K as Macro Fears Fuel Crypto Market Decline
The cryptocurrency market is experiencing a downturn, with Bitcoin (BTC) retesting $77K as investors pull back due to rising macroeconomic fears and hawkish rate outlook. According to CoinGlass data, approximately $386 million in crypto positions were liquidated, including nearly $270 million in longs, driving the price of Bitcoin down from its high of $79,760 over nearly 14 hours.
The decline is attributed to a combination of factors, including profit-taking by holders, declining demand for Bitcoin ETFs, and rising macroeconomic fears. The CME's FedWatch tool indicated a 60.2% chance for a Fed rate hike at the next meeting, adding pressure to risk assets.
Renewed inflation concerns and geopolitical fears have further fueled market volatility, with oil prices surging over $100 a barrel. Despite this, the $76K level has so far held as a key support area for Bitcoin, with about 35% of the BTC supply accumulated between $76K and $82K.