Bitcoin Drops 6% to $84,000 as Markets Await the Next Catalyst

Bitcoin erased a rally above $90,000 in less than 24 hours, sliding sharply into the $84,000 range as macro uncertainty and fragile market structure reasserted control.

The move highlights how sensitive crypto markets remain to policy signals and positioning around major macro events.

Sharp Reversal After $90,000 Breakout

Bitcoin fell to a low of $84,416, marking a roughly 6% decline from intraday highs, according to Bitcoin Magazine Pro data. The selloff came just one day after BTC briefly traded above $90,400, completing a rapid round-trip that underscored elevated volatility ahead of this week’s Federal Reserve meeting.

Daily trading volume surged to approximately $48 billion as prices fell, suggesting forced liquidations and the unwinding of short-term leveraged positions. Bitcoin’s total market capitalization declined to roughly $1.72 trillion, down about 4% on the day.

Fed Meeting Triggers “Sell the News” Reaction

The reversal followed comments from Federal Reserve Chair Jerome Powell, who emphasized continued strength in the U.S. labor market, with unemployment holding near 4.4%. Powell refrained from signaling urgency around rate cuts, dampening expectations for near-term monetary easing.

For risk assets — including crypto — that had rallied into the meeting, the outcome quickly became a classic “sell the news” event.

Key Technical Levels Come Into Focus

From a technical standpoint, bitcoin struggled to hold above resistance near $91,000 after briefly breaking higher. The failure triggered renewed selling pressure.

Market analysts are now watching several key levels:

$88,000: Near-term pivot for stabilization

$84,000: Critical downside support

$72,000–$68,000: Potential retracement zone if support fails

A sustained break below $84,000 could open the door to deeper downside, while bulls are expected to defend the level aggressively to avoid a broader technical breakdown.

Gold Outperforms as Safe-Haven Demand Persists

While bitcoin struggled to maintain momentum, gold surged to new all-time highs above $5,550 per ounce, reflecting continued demand for traditional hard assets amid currency and policy uncertainty.

Bitcoin initially appeared to benefit from similar macro tailwinds but failed to sustain its move, reinforcing the divergence between crypto and legacy safe havens in the current environment.

Policy Developments Loom

Attention now shifts to Washington. On February 2, the White House is set to host banking and crypto executives to discuss reviving stalled U.S. crypto legislation.

The meeting — organized by the administration’s crypto council — will focus on unresolved regulatory issues, particularly the treatment of interest and rewards paid on dollar-pegged stablecoins. The talks aim to broker compromise after previous negotiations broke down.

Current Market Snapshot

At the time of writing:

Bitcoin price: ~$84,437

24-hour volume: ~$48 billion

24-hour change: −4%

Seven-day high: ~$90,316

Seven-day low: ~$85,417

Bitcoin is currently trading near the lower end of its recent range as markets wait for the next macro or policy catalyst to define direction.