Bitcoin Drops 11% Amid Market-Wide Crypto Correction: Key Drivers and Institutional Moves

Bitcoin experienced a sharp 11% decline, trading at $81,600, while Ethereum fell 12% to $2,665. The broader cryptocurrency market followed suit, with Binance Coin and Solana dropping 11% and 13%, respectively. This downturn was largely driven by robust U.S. jobs data, which tempered expectations for imminent interest-rate cuts, leading to significant outflows from Bitcoin and Ethereum ETFs. Technical indicators for Bitcoin weakened considerably, with the Relative Strength Index hitting its lowest point in three years, and prices hovering just above critical support levels tied to major investment strategies. Notable sell-offs included a long-term Bitcoin wallet liquidating $1.4 billion in assets and another entity offloading 10,000 ETH to fund a share buyback program. Institutional pressures mounted as digital asset firms faced potential exclusion from key market indexes, and a leading mining company reported billions in unrealized losses. A software malfunction was also cited as a contributing factor to the sell-off. Despite the market turbulence, regulatory and corporate developments advanced: U.S. lawmakers introduced new crypto legislation, Metaplanet unveiled a $95 million Bitcoin acquisition plan, Coinbase partnered with Morpho to offer ETH-backed loans, and Securitize collaborated with Plume to enhance real-world asset offerings. Additionally, India announced intentions to launch an ARC stablecoin, signaling ongoing global adoption efforts.