Why is Bitcoin Down Today? BTC Is Crashing and Plunges Below $87K

Bitcoin, the largest cryptocurrency by market capitalization, is sliding down in the crypto market and is extending a downward trend that has triggered a drop of over 30% from its yearly high of $126,000. According to Bitcoin’s candlestick chart, BTC trades sideways with increased volatility with small bounces that fail under $87K, forming a weak consolidation base for today’s trading activities. The Bitcoin price today is $86,531.27, reflecting a 3.6% decline over the past 24 hours. Daily trading volume has risen 7.8% to $45.19 B, while the market cap has slipped 3.5% to $1.72T. 

In today’s earlier session, Bitcoin’s price reached a weekly low of $85,337.2, indicating a significant drop of more than from its all-time high recorded this year. The crypto analysis page Burji Chart posted on X that the price had tapped the $85k–$83k demand zone exactly as anticipated. They noted that the current reaction showed buyers stepping in, but confirmation was still needed. They advised to wait for confirmation, either a strong bullish reaction from this zone or a breakdown with volume.  

According to the recent market analysis, Bitcoin’s current market momentum is bearish to neutral; the expert analysis concludes that the price is stabilizing in the mid‑$86K range after the sharp downtrend in November. They argue that as long as BTC remains below its 50‑day and 200‑day moving averages, the market is more likely to enter a significant downtrend than to stage an impulsive rally. 

Why Is Bitcoin Dropping Today?

Bitcoin’s current downtrend is attributed to multiple factors, like macroeconomic uncertainties, massive liquidations, expected interest rate hike by the Bank of Japan (BoJ), and technical breakdown below critical levels. According to the latest analysis, the broader cryptocurrency market has shifted into a “risk‑off” stance ahead of key macroeconomic events, including the Bank of Japan’s upcoming decision on a potential interest rate hike. Along with the Bank of Japan, the Bank of England, and the European Central Bank are also set to hold monetary policy discussions this week. Macroeconomic factors like China shutting down mining have also impacted the BTC rally. Crypto analyst Solvix said in an X post that China had shut down mining and that today’s ban might cause BTC price to capitulate further down until the difficulty is adjusted, which is usually done within 2 weeks. He noted that all eyes were on the BOJ event, and the market was pricing in according to this large cascaded event.     

Massive liquidations are another huge factor in BTC’s current market momentum. Over $590 million in leveraged crypto positions were liquidated in a 24-hour window. Bitcoin alone led these liquidations, with over $200 million wiped out. The forced selling increases supply on the market, lowers demand, and pushes the price further down. So, when more liquidations are triggered, it will create a cascade effect, accelerating the drop. 

BTC’s technical breakdown amplifies enhanced selling pressure and bearish impact within the cryptocurrency market. Bitcoin broke below the 23.6% Fibonacci retracement, closing at the oversold RSI levels. The MACD histogram displays weak bullish divergence, which will be insufficient to reverse the ongoing bearish trend. Based on the latest analysis, Bitcoin has recently broken below key support levels on the price charts, triggering additional selling pressure. When these technical supports fail, traders often exit their positions, which drives prices even lower. 

Also Read: Bitcoin Price Drops 5%: Is the Downtrend Back in Control?