Will BTC USD Maintain $86K? What’s Causing the Crypto Dip Today?
Bitcoin remains at $87K, but the market has dipped by 2.7% today. Price pressures from tariffs and Bitcoin ETF outflows—will BTC/USD maintain its position above $86K?
Currently, Bitcoin’s value is steady, pushing back against bearish moves observed over the last two trading days. BTCUSD is trading above $87,000; buyers are in control, even as the wider trading market declines.
Bitcoin Price Steady Yet Stagnant: Essential Updates on BTC USD This Week
According to Coingecko, the total crypto market capitalization for crypto stands at $2.9 trillion, reflecting a 2.7% decrease within the past 24 hours.
Nonetheless, BTC is quite effectively resisting any downward price movement. If this trend continues, it may facilitate the emergence of new higher price peaks for BTC USD.
From a technical perspective, Bitcoin is supported around $86,000, while facing price ceiling at $89,000 and $90,000.
(BTCUSD)
For the upswing from Q4 2024 to persist, bulls must secure a convincing close above the liquidation zone. This could ignite a movement towards $100,000 and historic highs.
However, despite investor optimism, specific factors are hindering momentum and weighing down crypto prices, evident in the recent 24-hour events.
What’s Causing Crypto’s Decline Today? Is Recovery Possible?
Following gains in Q4 2024, prices have suffered, with numerous altcoins—including some of the top cryptocurrencies to invest in—reporting double-digit declines and even surrendering gains made in late 2024.
ETH, Solana, Cardano, and EOS are all experiencing significant pressure, sharply retracing from their highs in 2025.
A mix of factors may be contributing additional pressure on prices. Although the Federal Reserve is expected to reduce rates in the future, contingent on macroeconomic developments, tariffs from the Trump era are continuing to stir crypto market anxiety.
In the event of new tariffs being introduced, economic disruption could ensue, compelling investors to pull back and redirect their funds towards bonds rather than riskier investments like cryptos. This risk-averse sentiment explains the sluggish BTC bullish and the general decline in crypto prices.
If Bitcoin remains below $90,000 and bulls don’t gain traction, weaker holders may decide to sell and exit their positions.
On-chain data suggests that this situation may align with current trading market trends, as short-term holders are already at a wrecked and might not wait much longer.
Short-term holders are facing significant losses, currently showing -12% overall—figures not observed in the last two years, aside from the lowest points of the 2024 correction.
Just recently, at the ATH, they were sitting on 28% gains.
Total devastation. pic.twitter.com/xqakwD8Uyb
— Sina
Any drop in price could instigate a panic sell-off, further accelerating the downturn and intensifying pressure on altcoins.
Can BTC USD Maintain Above $86,000?
For BTC to close above $90,000 and transition toward $100,000, significant players need to step up.
As per Soso Value, institutional interest is evident, with more spot Bitcoin ETF shares being acquired.
Yesterday, institutional and high-net-worth individuals in the U.S. purchased over $89 million in BTC-backed shares. Notably, Bitcoin ETF inflows have been positive this week, fostering bulls’ hopes.
(Source)
Moreover, a growing number of BTC whales are active. On-chain data indicates that the count of whales holding between 100 and 10,000 BTC has risen since Bitcoin dropped below $80,000. This suggests potential accumulation, as discerning traders buy the dip while eyeing some of the latest presales to invest in.
Despite short-term holders experiencing losses, on-chain metrics do not suggest they are hurrying to sell.
Since January 1st, 2025, Short-Term Holders (STH) have increased their stock by 201,743 Bitcoin. This group now holds 5,750,076 Bitcoin.
At the peaks of past cycles, STH possessed 8.4M and 7M Bitcoin respectively.
In essence, about 200K BTC are presently sitting at an unrealized… pic.twitter.com/i65zLLoz0Z
— Axel
Since the beginning of January 2025, they have gathered and currently hold more than 200,000 BTC.
DISCOVER: 20+ Next Crypto to Explode in 2025
BTC Price Update: Reasons for Crypto Decline and Will BTC Maintain $86K in 2025?
- Bitcoin Price Status: BTC holds steady above $87,000 despite falling prices across the crypto market
- Reasons for Crypto Decline: trade wars and tariffs may deter capital flowing into cryptos
- Will BTC/USD stay above $86,000? Bitcoin ETF outflows decelerate as institutions increase investments
The article Will Bitcoin USD Maintain $86K? What’s Behind Crypto’s Decline Today? first appeared on 99Bitcoins.
