Liquid Network Halt Triggers Selloff Risk for Bitcoin Price
The price of Bitcoin (BTC) has been affected by the halt in operations of the Liquid Network after a significant withdrawal from its reserves. This event has shaken confidence in sidechain protocols, with nearly $320 million worth of BTC withdrawn, according to Finance Biggo.
The suspension of all L-BTC deposits and withdrawals has disrupted market operations, forcing exchanges and participants to adjust rapidly. Despite US-listed Bitcoin spot ETFs recording net inflows of $986.9 million last week, the security incident has dominated negative sentiment.
Techincally, BTC is trading below its MA-20 ($79,187) and MA-50 ($79,577), while remaining above the MA-200 ($69,849). Momentum indicators show bearish alignment, with a high likelihood of further weakness if $77,232 support fails.