Will Bitcoin USD Maintain $86K? What’s Causing the Crypto Dip Today?

Bitcoin remains at $87K while the trading market experiences a 2.7% decline today. Tariffs and Bitcoin ETF outflows are impacting prices—will BTC/USD maintain its position above $86K?

Currently, Bitcoin’s price is holding steady, thwarting bearish efforts over the last two trading sessions. BTCUSD is above $87,000; buyers are in control, even as the wider market declines.

Bitcoin Price Steady yet Unchanged: Key Insights on BTC USD for This Week

Per Coingecko, the overall market capitalization stands at $2.9 trillion, reflecting a 2.7% decrease in the last 24 hours.

Nonetheless, Bitcoin is notably absorbing any downward pressure on prices. If this trend persists, it may pave the way for the next surge in BTC USD.

From a technical standpoint, BTC has support around $86,000 and price ceiling levels at $89,000 and $90,000.

(BTCUSD)

For the upward trend from Q4 2024 to persist, bulls need to close decisively above the liquidation zone. This could initiate a rally, potentially propelling prices towards $100,000 and beyond.

However, despite traders’ optimistic sentiments, several factors are hindering momentum and suppressing crypto prices, highlighted by recent events.

What Caused Today’s Crypto Decline? Are We Due for a Recovery?

Following gains in Q4 2024, prices have plummeted, with most altcoins—especially the top cryptocurrencies to consider—experiencing significant losses, reversing gains from late 2024.

ETH, Solana, Cardano, and even EOS face downward pressure, sharply declining from their 2025 peaks.

A mix of factors may further strain prices. While the Federal Reserve aims to eventually lower rates depending on macroeconomic conditions, tariffs from the Donald Trump era continue to create unease in the markets.

If new tariffs are imposed, they could disrupt the economy, compelling investors to tighten their budgets and shift funds to bonds instead of higher-risk assets like cryptocurrencies. This risk-averse sentiment helps explain the strained BTC uptrend and the general decline in crypto prices.

As long as BTC remains under $90,000 and bulls are unable to follow through, weaker investors might opt to exit their positions.

This scenario is supported by on-chain data, as short-term holders are already facing losses and may not linger much longer.

Short-term holders are suffering significant losses, currently facing an aggregate drop of -12%—a level not observed in the last two years, except during the 2024 crypto market bottom.

Just a short time ago, they enjoyed 28% profits at the ATH.

Total devastation. pic.twitter.com/xqakwD8Uyb

— Sina 21st Capital (@Sina_21st) March 10, 2025

Any significant price decline could incite a panic sell-off, intensifying the bearish and increasing the burden on altcoins.

Can Bitcoin USD Remain Above $86,000?

For Bitcoin to close higher than $90,000 and surge towards $100,000, major players need to be active.

As reported by Soso Value, there is notable institutional interest, with increased purchases of spot Bitcoin ETF shares.

Just yesterday, institutions and high-net-worth individuals acquired over $89 million in BTC-backed shares in the United States. Importantly, Bitcoin ETF inflows have been promising this week, providing a boost for bulls.

(Source)

Furthermore, the involvement of more Bitcoin whales is on the rise. On-chain data indicates that the number of whales holding between 100 and 10,000 Bitcoin has grown since Bitcoin dipped below $80,000. This suggests potential accumulation, with astute traders capitalizing on the dip and eyeing some of the most promising presales currently available.

Although short-term holders are in negative territory, on-chain data doesn’t suggest they are in a hurry to sell.

Since January 1st, 2025, Short-Term Holders (STH) have increased their holdings by 201,743 Bitcoin. This group currently possesses 5,750,076 Bitcoin.

During previous cycle peaks, STH held 8.4M and 7M BTC, respectively.

In essence, approximately 200K BTC are currently not realized… pic.twitter.com/i65zLLoz0Z

— Axel Adler Jr (@AxelAdlerJr) March 25, 2025

Since the start of January 2025, they have amassed and now long-term holding over 200,000 Bitcoin.

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The article Will Bitcoin USD Hodl $86K? Why Is Crypto Down Today? was originally published on 99Bitcoins.