Market Overview - Bitcoin (BTC) experienced a rapid decline back to $84,000 during U.S. morning hours, alongside declines in stocks and precious metals, with BTC, ether (ETH), XRP, and solana (SOL) down 5%-7% over the last 24 hours [1] - The selloff was attributed to weak earnings results, concerns regarding Iran, and potential government shutdowns, leading to a broader market unwind affecting hedge funds and commodity trading advisors [2] Liquidations and Market Sentiment - The Thursday selloff resulted in over $650 million in liquidations of bullish leveraged positions across all crypto assets, marking the second-most severe flush in the past month [3] - Perpetual swap funding rates have turned bearish for major tokens, indicating a shift in market sentiment towards a bearish outlook [4] Funding Rates and Market Dynamics - Negative funding rates suggest that short sellers are paying long positions, indicating a bearish sentiment among traders, which historically precedes short-term market bottoms [5] - U.S. spot bitcoin ETF buyers have a cost basis near $84,099, slightly below the current price of $84,400, while the True Market Mean Price is just above $80,000, a critical support zone [6] Price Levels and Historical Context - A sustained break below $80,000 could lead to a retest of April 2025 levels around $76,000, reflecting historical price movements during significant market events [7] - Bitcoin is on track for its fourth consecutive monthly loss, a notable trend not seen even during the severe downturn of 2022, with the last similar streak occurring in 2019 [8] Future Outlook - The equity market's focus on AI infrastructure and deregulation has overshadowed Bitcoin's performance, with expectations that BTC will not see significant upward movement until a notable economic indicator is released by the U.S. [9]