Bitcoin has been scared into a plunge: 85K support has broken, geopolitical tension + Fed hawkishness have all come into play!
Just saw the latest market situation, BTC suddenly dropped straight down from close to 90K, losing the 85,000 USD mark in one go, setting a new low in recent weeks. Other mainstream coins also fell along with it, not an isolated phenomenon.
This drop, while simple, is not so simple; it is the result of multiple pressures stacking:
First, geopolitical risks are on the rise.
The U.S. is increasing troops in the Middle East, and the situation in Iran is tense; such events often lead to funds retreating from risk assets and flowing into traditional safe havens like gold and bonds. This pressure directly reflects on the crypto market.
Second, the Federal Reserve continues to maintain a hawkish stance.
The FOMC did not give any dovish signals, meaning expectations for easing continue to be suppressed. Coupled with the fact that employment and inflation have not shown obvious softening, the Fed's reluctance to cut interest rates has further compressed risk appetite.
Third, long positions are being liquidated, amplifying the drop.
Trading volume surged, and leveraged positions were rapidly cleared. The pullback is not without logic; it occurs under conditions of no support levels + capital leaving the market.
In summary, market sentiment is:
It is not that BTC has lost value, but rather that "risk assets have perished under safe-haven sentiment."
It is important to note that Bitcoin sometimes does not act as "digital gold" during extreme risk aversion periods, and instead is sold off first because it still belongs to high-risk assets. Many times, the true safe-haven entry is not BTC, but gold, U.S. dollar bonds, and physical assets.
Structurally, this pullback also exposes one thing:
The short-term market is actually very sensitive to macro rhythms.
Risk events stacking + liquidity expectations shrinking = liquidity fleeing.
BTC is also uncomfortable when it does not drop, as short-term funds retreat first.
So what needs to be focused on now is not "how much it has dropped,"
but rather the next two things:
Will macro safe-haven sentiment continue to rise?
When and how will the Fed truly change monetary policy expectations?
This drop is not the "end of the world,"
but rather a panic correction after the market fluctuated at high levels.
Whether the market can stabilize depends on the repricing of macro liquidity and risk appetite.
BTC has not been defeated,
but it is simply not its time to "speak."