#BitcoinPlungeNearsHistoricLows

#BitcoinPlungeNearsHistoricLows
The cryptocurrency market is experiencing one of its most volatile periods in recent years. Although Bitcoin ignited significant excitement by testing the $98,000 levels in January, a sharp sell-off following the start of the new month has dragged prices down to critical support zones. Specifically, the 22.2% decline witnessed over the last seven days has been recorded as one of the worst weekly performances in Bitcoin's history.
Fundamental Factors Pressuring the Market
The current retracement is driven by a combination of both technical and macroeconomic factors:
Macroeconomic Data and Interest Rate Expectations: Employment and inflation data from the US signaled that central banks might not be as aggressive in their interest rate cut processes as previously expected. This shift has reduced investor risk appetite, leading to a flight toward safe-haven assets.
Liquidity Crunch: The long-term yield spread between the US and Japan falling below the 1% threshold triggered the closing of "yen carry trade" positions in the market, causing a liquidity contraction in risky assets.
ETF Outflows: Following the robust institutional demand in January, net outflows from spot Bitcoin ETFs as of mid-February became a key driver deepening the sell-off pressure.
Technical Outlook and Critical Levels
Analyses indicate that Bitcoin is currently attempting to hold the primary support band between $60,000 and $62,000. A sustained close below this region could intensify debates regarding a "historic low." Furthermore, the Fear and Greed Index dropping to 8 points—settling firmly into "extreme fear" territory—highlights that market pessimism has reached a peak.
For the market to regain momentum, Bitcoin needs to reclaim moving averages above $80,000, and macro data must soften to support crypto assets. For investors, the current landscape is defined as a period of significant uncertainty that demands meticulous risk management.