In Brief:
- Bitcoin fell nearly 4% to $81,102, hitting a two-month low amid heavy liquidations.
- Tech and metals sell-offs, including Microsoft’s 10% drop, added pressure on cryptocurrency sentiment.
- Support at $80,000 is key; failure could see Bitcoin retreat toward $70,000.
Bitcoin (BTC-USD) slumped to fresh two-month lows in early Asia trade on Friday, falling near $81,000.
The cryptocurrency is now more than 34% below its October all-time high, with over $1.5 billion in bullish positions liquidated across all tokens in the past 24 hours, according to CoinGlass.
By 11:00 GMT, Bitcoin was trading at $82,722.71. Support stands at $80,000, with potential declines into $70,000 if buyers fail to defend this level.
The wider markets added to pressure as tech stocks and metals faced heavy selling. Microsoft’s shares dropped 10% due to concerns over AI spending, while gold and silver fell more than 6% and 14% respectively. End-of-month flows and portfolio rebalancing has also amplified volatility.
Investors are rotating away from tech stocks, feeding cautious sentiment that continues to weigh on cryptocurrencies. Prices are expected to stabilise heading into February, which could give markets a clearer sense of direction.
For now, Bitcoin remains outside the spotlight for many investors, overshadowed by equity market volatility and better returns elsewhere.