Bitcoin Crashes to $86K: $800M Longs Wiped Out in Macro Mayhem!
Bitcoin $BTC experience one of those turbulence moments tied to U.S. market opening pressures and broader macro risks.
Key Factors Rattling the current crypto Market:
1. U.S. government shutdown fears: The ongoing budget disputes, Tariffs and funding cliff talks have escalated odds of a partial shutdown (some reports note probabilities spiking, with political standoffs over agency funding and related issues). This tension creates uncertainty, pressuring risk assets like crypto and stocks.
2. Trade wars and Iran tensions: The current geopolitical jitters (Middle East flare-ups, potential escalations) add to global risk aversion, contributing to the sell off witnessed in crypto and other asset class.
3.carry trade unwinding: Persistent pressure on this popular trade (borrowing cheap yen to fund higher yield assets) has led to deleveraging, hitting leveraged positions hard and spilling into crypto.
These factors and many more led to massive Liquidation experienced on bitcoin, over $800 million in long positions.
Overall, this dump looks like a classic macro-driven correction in strong BTC cycle. Bitcoin above prior lows, gives hope for possible rebound soon.