Bby Charm

BLOOD IN THE STREETS 📉

Bitcoin has taken a massive hit today, Fem, dipping below $67,000 for the first time since late 2024. While the charts look scary, the end of the world vibe is being driven by a perfect storm of macro and technical factors.

I will try to enumerate the reasons due to which this is happening and where is the support lying.

1. The "Core" Catalyst: The Warsh Effect

The primary trigger for this specific week's freefall is the nomination of Kevin Warsh to lead the Federal Reserve.
The Hawkish Pivot: Warsh is known for favoring higher real interest rates and a smaller Fed balance sheet.
Risk-Off Sentiment: Markets are pricing in a "tighter for longer" monetary policy. When the Fed gets aggressive, investors flee "risky" assets like Bitcoin and tech stocks in favor of the US Dollar, which has surged (DXY above 97.5).

2. Why the Fall is So Violent
If you’re wondering why it’s dropping so fast, it’s less about people selling and more about the "liquidation engine:
Forced Liquidations: Over $775 million in leveraged positions were wiped out in just the last 24 hours. When traders use high leverage and the price dips, their positions are automatically sold, creating a cascading effect that pushes the price even lower.
The $126k Hangover: Bitcoin is now down over 47% from its October 2025 peak of roughly $126,000. After such a massive run-up, the correction was bound to be painful once the momentum stalled.Other Pressure Points

a. ETF Outflows :- Institutional demand through spot ETFs has cooled significantly, removing the "safety net" we saw in late 2025.
b. Geopolitical Tension | Ongoing friction between the US and Iran has pushed investors toward traditional safe havens like gold ($5,000+) rather than digital ones.
c. Regulatory Stall | The "Clarity Act" (a major crypto bill) remains stuck in the Senate, leaving big players nervous about the US legal landscape.

Technical Outlook
Bitcoin is currently testing critical support in the form of Weekly EMA200 which is being tested for the first time since breakout in sep 2023. I feel this is our last line of defense. If that fails, market reset could pull prices even lower toward $60,000 or even $50,000 before a true floor is found.