Bitcoin's Price Has Left Many Investors Confused After It Dropped Below $84,000

Bitcoin's price has left many investors confused after it dropped below $84,000. Despite strong bullish factors over the past week, its recent price movement is far from the high expectations

Bitcoin price has left many investors baffled after dropping below the $84,000 level. Despite a week full of strong bullish factors, the recent price movement is far from the high expectations set by analysts following the announcement of the Strategic Bitcoin Reserve.

Bitcoin Drops Over 6%

Bitcoin is currently changing hands at $80,909, down more than 6% over the past 24 hours. BTC price also saw a decrease of 3.37% over the past seven days, with trading volumes declining by 53%.

Despite the decreasing figures, Bitcoin whales have been actively buying, accumulating more than 22,000 BTC in just three days.

Despite a week full of good news, including the signing of an executive order for a Strategic Bitcoin Reserve, a Crypto Summit at the White House, and encouraging statements from the OCC, Bitcoin’s price is unexpectedly falling and could drop below $80K.

The U.S. President signed an executive order on March 7 to seize Bitcoin rather than buying it from the market. This move saw Bitcoin’s price drop more than 6% from $90,400 to $84,979.

“The knee-jerk reaction lower likely stems from the realization that no actual budget has been allocated for BTC purchases in the near term,” QCP Capital shared in a recent note.

However, it also noted that while this wasn’t the bullish catalyst as many expected, it’s still positive for crypto. The risk of random Silkroad BTC sales disrupting the market is gone, and the U.S. government has reaffirmed its commitment to a long-term crypto strategy, it noted.

One analyst was surprised by the recent events, stating that in his eight years following Bitcoin, he never saw the price action so out of sync with the news. This week was one of the most bullish in Bitcoin’s history, yet the market is facing a decline.

What Is Causing The Drop?

Several factors are behind Bitcoin’s recent price drop. Macroeconomic issues, like new tariffs from the U.S., have sparked sell-offs in Bitcoin and other cryptocurrencies.

Besides, the release of the Non-Farm Payrolls (NFP) report on Friday suggests that the Federal Reserve might tighten monetary policy, which could hurt Bitcoin’s price.

Experts noted that while the executive order for a Strategic Bitcoin Reserve and the Crypto Summit were positive, the lack of concrete policies might have cooled investor enthusiasm.

Also, Bitcoin’s decline is dragging altcoins down, with ETH, XRP, and BNB losing more than 6%, 6% and 4% respectively in the last 24 hours.