Bitcoin Wobbles on $85k Tightrope as Liquidations Go Wild! 🎢💸

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Oh darling, Bitcoin has decided to play a little game of limbo, testing the $85,000 support level earlier today. It seems our beloved cryptocurrency is feeling a tad nervous with liquidations rising faster than my spirits after a good gin fizz, all in anticipation of the U.S. jobs data that’s set to drop like a bad habit later today.

  • Bitcoin has taken quite the tumble, down over 4% on Tuesday, giving that $85k support a thorough retest-like a dog sniffing every corner of the park!
  • A staggering $169 million in long positions were liquidated from the Bitcoin Futures market. Who knew they could throw such a party?

According to the latest gossip from crypto.news, our dear Bitcoin (BTC) took a sharp nosedive from its high-flying position of over $89,000 yesterday, plummeting to a dramatic low of $85,427 today. It did manage to regain some composure, however, and is currently sitting pretty at $85,798-still down 4.2% on the day. And let’s not forget, that’s a hefty 9.3% drop from last Thursday’s high and nearly 32% off its year-to-date peak. Quite the rollercoaster! 🎢

Bitcoin’s Price: The Drama Unfolds

Our dear bellwether asset has dipped sharply as investors are more cautious than a cat in a room full of rocking chairs, awaiting the U.S. jobs data release at 8:30 AM ET today. This non-farm payroll report is expected to shed some light on the labor market’s health, or lack thereof.

Economists, ever the pessimists, anticipate a sluggish job market in October with estimates of just 55,000 new jobs added-nearly half of the previous month’s figures. Charming, isn’t it?

While a slowdown in job creation typically implies lower inflation risks (and more room for the Fed to cut interest rates), investors remain skittish, especially since the Fed hinted at only one rate cut slated for 2026 after a paltry 0.25% slash just a week prior. It’s as if they’re teasing us with a cupcake but keeping it just out of reach!

For context, cryptocurrencies, including our favorite Bitcoin, generally frolic when more Fed rate cuts are expected and sulk when the central bank decides to tighten the purse strings.

This broader uncertainty regarding the Fed’s decisions has likely prompted some profit-taking among investors, triggering a veritable cascade of liquidations, akin to a game of dominoes where the stakes are higher than my last romantic escapade.

Data from CoinGlass reveals that the broader crypto market experienced a staggering $653.4 million in liquidations, with $576.6 million coming straight from long positions. And wouldn’t you know it, our dear Bitcoin accounted for a whopping $169 million in long liquidations alone!

Bitcoin’s decline also comes as traders unwind their leveraged positions, with the open interest in its futures market dropping by 2% to $59.8 billion in the past 24 hours-a far cry from the $94.1 billion recorded earlier in October. It’s like watching a grand ball lose its guests one by one!

It appears investors are also reacting to a noticeable dip in demand from institutional players. According to SoSoValue, U.S. spot Bitcoin ETFs have seen net outflows of $158.8 million in December, continuing a trend from the previous month, which saw them shedding nearly $3.5 billion. Talk about a dramatic exit!

Amidst all this uncertainty, some market commentators suspect that the broader crypto downturn-including Bitcoin-could be a well-orchestrated dump aimed at manipulating prices. A conspiracy, perhaps? Per an X post from the ever-watchful market expert Tracer, big players like Binance, Coinbase, Wintermute, and those pesky whales have together sold nearly $2 billion worth of BTC yesterday, setting off this delightful plunge.

Analysts: The Divided Opinion Society

“In the short term, Bitcoin might fall as low as $75,000. However, it does seem to have its eyes set on a glamorous $135,000 despite occasional pullbacks. The sentiment in crypto is as fearful as a mouse at a cat convention,” muses Komodo Platform CTO Kadan Stadelmann, ever the optimist.

As we speak, the Crypto Fear and Greed Index is languishing at a dismal reading of 11, indicating persistent “Extreme Fear” in the market-a situation that will likely lead to volatility until a clearer direction makes itself known, like a waiter trying to find your table in a crowded restaurant.

Yet, not everyone is wearing rose-tinted glasses. Analyst Ted Pillows believes Bitcoin could very well hold onto that $85,000 level as support, thanks to “large buy orders between $80,000 and $85,000 on Binance.” One can only hope! 😌

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2025-12-16 11:28