Crypto losses accelerated Thursday afternoon with bitcoin fell below the key support level of $85,000, dropping to $84,500 – its lowest price in almost three weeks – before rebounding slightly.
The move erased BTC’s morning rally to $89,500 and sent the broader crypto market lower. Ether fell below $2,800, down 1.1% in the past 24 hours, while Solana’s SOL fell 4% to below $120, its lowest since April.
Altcoins led the rout, with , and SUI plunging more than 5%, outpacing bitcoin’s 1.6% daily decline.
Wild price swings across the board triggered $550 million in liquidations over the past 24 hours in derivatives markets, according to CoinGlass data, eliminating both short and long leveraged trade positions.
The $85,000 level has been a key area of support in recent weeks, with BTC finding buyers there on multiple occasions. Analysts at AmberData, a cryptocurrency analytics firm, called this level “crucial,” and its decisive loss could open the door for a deeper correction towards $80,000, analysts at cryptocurrency analytics firm AmberData warned.
According to CoinGlass data, a check of the perpetual swap markets shows that funding rates for many altcoins have gone negative, meaning that shorts, looking to profit from falling prices, are paying fees to longs to keep their positions open. This indicates that traders remain cautious and risk-free.
Nonetheless, the lack of a spike in trading volume suggests that the market is experiencing “orderly development.” deleveraging,” rather than panic selling, AmberData analysts said.
“The lack of peak volume during the selloffs indicates that sellers are exhausted rather than new deals emerging,” they said.
