Bitcoin Falls Below Key Support Level, Market Eyes Institutional Fund Movements

Bitcoin Continues to Struggle

Bitcoin recently faced significant pullback, breaking below the $80,000 key support level and dropping as low as $74,500, with Ethereum also falling below $2,170. Market analysts believe that changes in Fed policy expectations and leveraged long liquidations have intensified price volatility.

Institutional Fund Flows in Focus

Analysts note that Bitcoin's short-term direction will largely depend on whether institutional investors re-enter the market and how geopolitical risks evolve. Additionally, policy statements from the new Fed Chair will be a key influencing factor.

Market Sentiment Remains Cautious

Option market sentiment remains cautious, but downside hedging demand is lower compared to previous market stress periods. This marks Bitcoin's fourth consecutive monthly decline, with the market hoping for stabilization near key support levels.