Bitcoin Dives into Bear Market Regime: Price Slips Under $95K Amid Fed Uncertainty
Bitcoin Dives into : Price Slips Under $95K Amid Fed Uncertainty
Bitcoin has taken a sharp turn downward. The top cryptocurrency dropped below $95,000 on Friday. This marks a big fall from its peak above $126,000 in October. That’s over 24% down. Traders and investors watch closely as this signals a possible
What Triggered the Latest Bitcoin Price Drop?
The decline hit hard amid a stock market sell-off. Uncertainty about Federal Reserve rate cuts played a key role. Bitcoin traded above $96,000 by midday but hit lows under $95K earlier. This mirrors wider market fears.
Bitcoin exchange-traded funds (ETFs) saw huge outflows. Data shows Thursday’s outflows were the second-highest ever. This lack of buying pressure adds to the pain.
Last month’s sell-off started with leveraged trades getting wiped out. Big long-term holders also sold off. Since then, recovery has been tough.
On-Chain Data Confirms
Experts at 10X Research track key metrics. They say no major buyers are stepping in right now. On-chain signals match this view. Bitcoin is firmly in a
- No fresh demand from new investors.
- Selling from holders dominates.
- Key indicators flash red for bulls.
If BTC breaks below $93,000, more downside could follow. Without a Fed rate cut in December or softer policy soon, a rally looks unlikely.
“This removes the chance for a classic Bitcoin Christmas rally,” notes recent analysis.
Fed Rate Decisions: The Big Crypto Killer?
The Federal Reserve holds the keys to markets. Higher rates for longer mean less risk appetite. Crypto feels this most. Investors pull back from high-volatility assets like Bitcoin.
Link to broader economy: How Fed decisions hit your savings, loans, and crypto.
A government shutdown dragged on longer than expected. New spending might boost liquidity later. But it takes time to flow into markets.
Expert Views Turn Cautious on Bitcoin
Even top strategists like Sean Farrell from Fundstrat sound warnings. “Momentum is missing for Bitcoin,” he says. No clear catalysts exist to spark a rebound.
Farrell sees potential in a dip. A drop to the low $90K range could shake out weak hands. This might reset prices and draw buyers back. A risk-off event across markets could help too.
Bitcoin Bear Markets: A Quick History Lesson
Bear markets aren’t new for Bitcoin. Past ones saw 80%+ drops. But each led to stronger bull runs. Key traits:
| Bear Market | Peak to Trough Drop | Duration |
|---|---|---|
| 2018 | 84% | 12 months |
| 2022 | 77% | 10 months |
| Current? | 24% so far | 1 month |
Current drop is early. Support at $90K-$93K could hold. Or it might test lower.
What Should Bitcoin Investors Do Now?
- Stay calm: Volatility is crypto’s middle name.
- Watch levels: $93K breakdown eyes $90K.
- Track Fed: Rate cut odds shift daily.
- Diversify: Don’t go all-in on BTC alone.
- Hunt catalysts: ETF inflows, halvings, or macro shifts.
For live prices and news: Latest crypto updates.
Looking Ahead: End of the Bear or Just Starting?
Short-term pain seems likely. No quick Fed help means sideways or down. But history favors bulls long-term. A dip to $90K might be the buy signal many wait for.
Bitcoin’s story isn’t over.
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