Bitcoin Surrenders Post-Election Gains; $73K Support Shattered
Bitcoin flushes to $72,863 as mechanical liquidations and macro fears erase 15 months of gains.
Bitcoin collapsed to its lowest level in fifteen months Tuesday, effectively round-tripping the entire rally sparked by Donald Trump’s November 2024 victory. The asset flushed to $72,863 in early New York trading, puncturing a critical structural floor that had held since the post-election breakout.
Liquidity evaporated instantly as the $78,000 support band failed. The breakdown triggered a systematic liquidation cascade, forcing over-leveraged longs into forced selling just as order books thinned out. Data confirms this was not spot-driven selling but a mechanical unwind; deeply underwater margin positions were hunted by volatility algorithms as macro jitters from the US stock market bled into crypto.
The breakdown of $78K accelerated selling, creating the exact cascading effects Michael Burry warned of earlier this week.
The move validates the bearish thesis floated by Michael Burry, who identified the fragility of the $78,000 shelf. Unlike the dip-buying seen throughout 2025, this correction found no immediate bid. Volume profiles show institutional buyers stepped aside, treating the drop as a ‘pain trade’ designed to punish late entrants.
Altcoins Beta-Dump
Capital flight was not isolated to Bitcoin. Risk assets correlated tightly, with Dogecoin and XRP shedding 6-7% respectively. The breakdown in the majors signals a broader risk-off rotation, stripping the speculative premium from the sector. A weak bounce attempt at $72,900 was immediately sold into, suggesting the market has yet to find a clearing price causing real demand.
