Bitcoin price drops sharply after recent surge

The crypto market took another significant hit on Monday. Bitcoin fell by 9%, erasing a large part of its recent gains. The market is reacting to increasing economic uncertainties, despite the previously positive response to the news of a strategic crypto reserve. At the time of writing, the Bitcoin price is around $86,000, while Ether has dropped 15% to $2,100. Shares of crypto companies, such as Coinbase and Robinhood, also lost 4.6% and 6.4%, respectively.

Why is the crypto market falling today?

Last weekend, it was announced that a strategic crypto reserve will be established, including not only Bitcoin but also Ether, XRP, Solana (SOL), and Cardano (ADA). This news led to a brief rally, with Bitcoin even hitting $95,000 and many altcoins rising sharply. However, this rally was short-lived. The market is now influenced by:

• Economic uncertainties causing investor caution.
• Technical resistance levels making further gains difficult.
• Selling pressure after the previous rise, leading traders to take profits.

How far can Bitcoin drop?

Last week, Bitcoin fell below the $90,000 mark for the first time in three months, a crucial support level. This increased fears of a further decline towards $70,000. Many altcoins also saw significant corrections.

Three key factors for Bitcoin's price

• Macroeconomic developments: Rising interest rates and geopolitical tensions affect investor risk appetite.
• Sentiment in the crypto market: As the hype around the crypto reserve fades, investors await new catalysts.
• Technical analysis: If Bitcoin can stay above $85,000, a recovery is possible. If it drops below this level, the next support range is $80,000 - $75,000.

What can we expect from the crypto market?

While plans for a strategic crypto reserve could have an impact in the future, short-term uncertainty remains high. This week, investors are looking forward to more details at the White House Crypto Summit, where new information on the U.S. crypto strategy may be shared.

Stay up to date with the latest crypto developments

The crypto market remains volatile, and sharp price movements like this highlight the importance of staying well-informed. Do you want to be the first to receive key crypto updates?

• Keep an eye on the market
• Stay informed about major announcements
• Follow Bitcoin's price and key support and resistance levels

The coming days will be crucial for the direction of the crypto market.
Disclaimer: This is not financial advice. Always do your own research and seek professional advice.