Bitcoin, which had surpassed $79,000, suddenly plummeted. What is the real reason?

▲ Bitcoin plunge/ChatGPT generated image ©

Bitcoin (BTC), the leading cryptocurrency, which had surpassed $79,000 with an unstoppable upward trend, suddenly plummeted to the $77,000 level, sending a significant shockwave through the market. This sudden drop, occurring without clear negative news, is interpreted as a result of a combination of large-scale long position liquidations and extreme caution among investors ahead of the upcoming regular meeting of the U.S. Federal Open Market Committee (FOMC).

According to cryptocurrency media outlet Watcher.Guru on April 27 (local time), Bitcoin soared to an intraday high of $79,399 but then underwent a steep correction, rapidly falling to $77,595. According to CoinGecko data, a virtual asset market tracking site, Bitcoin's price dropped by 0.5% compared to 24 hours prior. This sudden crash led to the forced liquidation of $68 million worth of long positions in just one hour, with $41 billion evaporating from the global cryptocurrency market capitalization, and $27 billion of that capital exiting from Bitcoin alone.

Virtual asset analysis firm CoinView analyzed that there was no clear catalyst that triggered this sudden drop. However, Bitcoin has shown a consistent recovery since falling to the $62,000 level in February 2026. In particular, the fact that the major resistance level, which was previously between $73,000 and $74,000, has recently risen to around $79,000 is interpreted as a positive sign indicating a gradual recovery of the asset.

Despite the temporary price drop, Bitcoin still maintains solid returns across other time charts. On an annual basis, it is down 17.4%, but recent trends show that it has gained 4.5% over the past week, 9.5% over 14 days, and 17% over the past month, indicating that it has not lost its medium to short-term bullish momentum.

Market experts point out that Bitcoin and the overall cryptocurrency market are extremely sensitive to geopolitical tensions and macroeconomic uncertainties. In particular, with the U.S. Federal Reserve (Fed) expected to freeze interest rates at the upcoming Federal Open Market Committee meeting, concerns about prolonged high interest rates and the cautious stance of investors waiting to confirm the meeting's outcome are cited as major factors fueling the current sell-off.

However, there is still ample room for a market rebound. The media anticipates that the situation could reverse if Kevin Warsh takes over from Jerome Powell as the new Federal Reserve Chair in May. The possibility of the new Chair implementing an interest rate cut immediately after taking office has been raised, and this is analyzed to be a powerful catalyst that could sharply boost investor confidence and lead to a full-fledged price recovery for Bitcoin.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*