Bitcoin price dropped sharply below $77k on Wednesday, following a strong market sell-off. The broader concern about the US government shutdown added to this price fall. The cryptocurrency had also dropped as low as $73,000, its last time being this low was in November 2024.
The market downturn followed a nearly 15% decline in Bitcoin price last week, causing a ripple effect across the crypto space.
The overall market capitalization declined by 2.39% to and under $2.59 trillion, which was mainly caused by the selling pressure of Bitcoin.
U.S. House Votes to End Government Shutdown with Funding Bill
The U.S. government shutdown, which began on January 31, has come to an end following the passage of a crucial funding bill. The legislation that passed the House of Representatives by a close 217-214 vote had already been passed in the Senate by January 30.
The signing of the $1.2 trillion budget by President Donald Trump to normalize government operations was a milestone in the current fiscal talks.
This agreement will be used to finance most of the agencies in the government until the end of the fiscal year in September. Nevertheless, the Department of Homeland Security (DHS) has its funding only till February 13, which can be debated further.
Democrats have pressured to tighten the controls of the federal immigration agencies, especially Immigration and Customs Enforcement (ICE), following scandalous cases of federal agents.
Lawmakers will continue debating the DHS reform, with one of the requirements being body cameras on agents and the ban of face coverings. The approval in both the House and Senate paves the way for the budget to be sent to the White House for final approval.
Bitcoin ETFs Face Heavy Outflows, While ETHH and XRP ETFs Show Strong Inflows
According to Sosovalue data, on February 3, U.S. Bitcoin spot ETFs experienced notable outflows, totaling $272 million. These outflows were mostly due to Fidelity, FBTC, which experienced a net redemption of 149 million.
On the contrary, Ethereum spot ETFs had a favourable run with a net inflow of $14.06 million. There were also increased inflows in Solana and XRP spot ETFs, which recorded inflows of $1.24 and $19.46 millions, respectively. These movements suggest the changing investor mood in the cryptocurrency sector.
Bitcoin Price Prediction: Will $76K Support Level Hold?
The latest BTC price crashed to $76,366, reflecting a decline of 2% in the past 24-hours. The technical analysis shows that Bitcoin is facing resistance at the point of around $80,000, and it is finding it difficult to pass the level. In the meantime, supports lie at $76,000 and $72,000, and these are major areas to monitor.
The Moving Average Convergence Divergence line lies above and over the slow-moving average signal line, indicating a mildly bullish mood.
Nonetheless, the descending size of the histogram indicates a declining momentum in the upward trend. The RSI (Relative Strength Index) stands at 35. This indicates that its market is on the verge of an oversold market, but is not at an extreme level.
Bitcoin price is likely to experience additional pressure as it still tries to break resistance at 80,000. If the BTC price does not overcome this hurdle, the next target will be the $76,000 and $72,000 support levels.