BTC Price Plunges After Reaching $87K as Traders Book Profits

Bitcoin's recent price surge to $87,000 has been followed by a sharp reversal, with the cryptocurrency now struggling to hold above the $82,000 level.

The sudden downturn is attributed to profit-taking by traders who had accumulated large positions at lower prices, as well as leverage unwinding and changing macro factors.

Analyst BullTheory noted that Bitcoin's rapid price appreciation from $84,500 to $87,200 in just 15 hours triggered approximately $216 million in short liquidations during the move higher.

In a subsequent reversal, leveraged long positions were heavily liquidated, with around $278 million worth of positions unwound over a five-hour period.

The weaker-than-expected U.S. jobs data also contributed to the volatility, as it reduced expectations for another Federal Reserve rate hike and affected Treasury yields, the U.S. dollar, and broader risk appetite.