Bitcoin Tests $80,000 Support After Decline from $126,000 Peak

Bitcoin has fallen from its all-time high of $126,000 to approximately $80,000, erasing over $600 billion in market capitalization. The cryptocurrency currently trades near $87,000 as traders monitor critical support zones. Three primary factors are driving the downturn: Federal Reserve policy shifts, institutional capital outflows combined with leveraged position liquidations, and tightening global liquidity conditions.