Bitcoin drops over 3% to $83,000 after losing key support; $394 million liquidated in one hour

Bitcoin fell nearly 3% in the past 24 hours to around the $83,000 mark on Wednesday after losing important on-chain support levels. The cryptocurrency was trading at $83,625.

In the past 24 hours, Ethereum was down 5.19% to $2,575. Among the major altcoins, BNB, XRP, Solana, Tron, Hyperliquid, Dogecoin and Cardano corrected up to 8.13%.

Nischal Shetty, Founder, WazirX said the crypto market is attempting to stabilize after a sharp leveraged sell-off and the fall triggered around $394 million in liquidations within one hour, including approximately $384 million in long positions.

Crypto TrackerTOP COINS (₹) Tether97 (0.47%)BNB74,236 (-1.67%)Bitcoin8,099,909 (-2.53%)XRP140 (-3.81%)Ethereum249,326 (-4.7%)Also Read |RBI MPC decision: How should mutual fund investors tweak their portfolio strategy after 25 bps rate hike?

Shetty further said that Bitcoin accounted for nearly $209 million of the liquidations, followed by Ethereum at $87 million, Solana at $27 million and XRP at $11 million. Across 24 hours, total market liquidations reached approximately $1.02 billion

The global crypto market capitalisation was down 2.84% to $2.84 trillion, according to the data on CoinMarketCap.

Minal Thukral, Executive VP-Growth & Crypto Business Head at CoinDCX said Bitcoin faced a significant upward pressure as the price plunged hard below $84,000 to $83,800 and the crypto fear and greed index is at 63, indicating the sentiments are still greedy.

Over the last week, Bitcoin was up 0.02% and Ethereum was down 4.06%. Among the major altcoins, BNB, Tron, Dogecoin corrected upto 5.81% whereas Hyperliquid and Cardano gained 3.77% and 2.55% respectively.

Riya Sehgal, Research Analyst, Delta Exchange said crypto markets have come under renewed selling pressure, with Bitcoin falling toward $84,000 and Ethereum declining to around $2,610 as macro uncertainty and a sharp derivatives unwind accelerated the downside.

Sehgal further said that according to CoinGlass, 104,793 traders were liquidated over the past 24 hours, with total crypto liquidations reaching approximately $554.83 million which suggests forced position closures amplified the decline once key technical support levels were breached.

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Market perspective

Prateek Gupta, Head of Business, Mudrex : Spot Bitcoin ETFs recorded $89.8 million in outflows Monday as inflows slowed sharply, breaking the momentum. However, on-chain signals remain supportive, with 40,000 BTC leaving Binance in two weeks, taking exchange reserves from 704,800 to 663,100 BTC.

CoinSwitch Markets Desk: The market continues to consolidate above the $84K support zone, while stronger inflows will likely be needed for a sustained breakout. Macro conditions are becoming increasingly important, with BTC’s correlation to the S&P 500 rising and elevated long-term Treasury yields still limiting risk appetite.

Avinash Shekhar, Co-Founder & CEO, Pi42: Bitcoin’s latest pullback highlights a market caught between improving structural momentum and persistent macro pressure. If BTC holds $85,000 and eventually converts $87,000 into support, the path toward $90,000 becomes considerably clearer.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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