Bitcoin Price Drops Amid U.S. Political Uncertainty

TLDR

• Bitcoin price dropped to $75,000–$77,000 recently.
• Margin liquidations exceeded $800 million during the decline.
• Ethereum fell by 12.30% in the last 24 hours.

Bitcoin has seen a significant price drop, falling to around $75,000–$77,000 recently. This decline is largely attributed to political uncertainty following a partial government shutdown in the United States. It was not primarily driven by U.S.–Iran tensions as previously thought. The sharp decrease was triggered by broken technical supports and margin liquidations that exceeded $800 million, alongside failed rallies above $90,000.

The U.S. Congress and the federal government are key parties involved, due to a partial shutdown after failing to meet a budget deadline, which impacted agency funding. Additionally, MicroStrategy, as the largest institutional holder of Bitcoin with over 700,000 BTC, now finds its holdings below the average cost basis of $76,037.

Impact on Other Cryptocurrencies

Other leading cryptocurrencies have also suffered significant losses in the wake of Bitcoin’s price drop. Ethereum (ETH) experienced a decline of 12.30% in the last 24 hours and 11.13% over the past seven days. Binance Coin (BNB) fell by 9.20% in the past 24 hours and 6.54% over the week. Broader altcoins have plunged by double digits, indicating a widespread market impact.

Despite the setback in the market, there was a notable rise in the creation of new Bitcoin addresses, reaching a two-month high. This suggests that long-term buyers are entering the market at lower prices. Trading volume also spiked to $75 billion daily amid the ongoing deleveraging.

Comparisons to Previous Market Trends

This current Bitcoin price movement mirrors past events such as in October 2023, when the cryptocurrency first lost its realized market value. A similar drop occurred in April 2025 when Bitcoin reached a low of $74,500–$75,000. The bull market high in November 2021 set the cryptocurrency at $69,000, which might serve as a long-term floor.

The market has also reacted to recent Federal Reserve meetings, which turned into a “sell the news” event with no signs of policy easing. This environment has amplified weekend volatility, resulting in over 10% drops and forced exits below the 50-day EMA.

Strategic Moves and Market Analysis

Despite the losses, some analysts suggest a potential downside risk below the $82,000–$84,000 support levels, targeting a further drop to $72,000–$68,000. This highlights a cautious market sentiment amidst the prevailing market conditions.

No primary statements from influential figures in the crypto industry or regulatory updates specifically address this crash. Community and developer sentiment on platforms such as GitHub, Reddit, Discord, and Telegram remains largely absent. Additionally, no significant changes in Total Value Locked (TVL), liquidity shifts, or staking flows have been reported during this downturn.

For further updates and insights on cryptocurrency trends, various online platforms and experts continue to monitor these developments closely. Risks and opportunities in the crypto markets depend heavily on both global events and local policies.