Bitcoin Dives into : Why BTC Fell Below $95,000

Bitcoin has taken a sharp turn downward. The top cryptocurrency dropped more than 24% from its all-time high of over $126,000 in October. On Friday, BTC fell below $95,000 during the day’s low points. This slide happened amid a broader stock market drop fueled by doubts about Federal Reserve rate cuts.

By midday, Bitcoin was trading just above $96,000. But the trend looks worrying. Data shows big outflows from Bitcoin exchange-traded funds (ETFs). Thursday saw the second-highest daily outflows ever. This lack of buying power is hitting hard.

What Sparked Bitcoin’s Recent Sell-Off?

The pain started last month with a big sell-off. Leveraged trades got wiped out in liquidations. Long-term holders also started selling their stacks. Bitcoin has not bounced back since.

Experts at 10X Research say there is no major buyer stepping up. Their data matches on-chain signals. These are metrics from the Bitcoin blockchain that show real activity.

“Bitcoin is in a “, 10X Research noted. A bear market means prices fall 20% or more from peaks, with weak buying.

On-chain indicators confirm this. Things like low new buyer inflows and high selling pressure point to more downside.

Federal Reserve’s Role in the BTC Price Drop

The Federal Reserve’s next moves are key. Markets hoped for rate cuts soon. But uncertainty grew after recent data. No cut in December? That could keep pressure on risk assets like Bitcoin.

10X Research warns: Without dovish signals from the Fed, no near-term rally. They see a high chance the Fed stays on hold. Forget the classic Bitcoin Christmas rally this year.

Rate cuts lower borrowing costs. This boosts stocks and crypto. Higher rates do the opposite. They pull money to safe assets like bonds.

Expert Views: Caution Rules the Day

Even top strategists are dialing back optimism. Sean Farrell from Fundstrat called out the missing momentum in Bitcoin.

“There’s just an absence of catalysts,” he said. A government shutdown dragged on longer than expected. New spending will take time to boost liquidity.

Farrell thinks a bigger risk-off move could shake things up. It might reset prices and draw buyers back.

“A revisit to the low $90K range for BTC might be enough,” he added.

Key Support Levels to Watch for Bitcoin

• $93,000: Critical level per 10X Research. Break here means deeper drops.
• Low $90,000s: Farrell’s reset zone. Could attract dip buyers.
• $85,000-$90,000: Next major support from past charts.

If BTC holds above $93,000, it might stabilize. But ETF outflows and no Fed help spell trouble.

Why On-Chain Data Matters for BTC Investors

On-chain metrics give the real story. Unlike price charts, they show wallet moves, holder behavior, and network health.

Right now:

• No marginal buyers: Big players not jumping in.
• High liquidations: Over-leveraged traders out.
• Long-term holder sales: Veterans cashing out.

This combo screams . Historically, Bitcoin recovers from bears. But it can take months. Think 2022’s long winter.

Broader Market Ties: Stocks and Crypto Move Together

Friday’s stock rout hurt Bitcoin too. Nasdaq and S&P 500 fell on Fed fears. Crypto follows risk assets in tight times.

ETFs were a big inflow machine earlier. Now outflows signal fading interest. Over $1 billion left funds recently.

What Could Turn Bitcoin Around?

1. Fed Pivot: Surprise rate cut or soft talk.
2. Risk-Off Reset: Prices drop enough to lure bargain hunters.
3. New Catalysts: Government spending ramps up liquidity.
4. Halving Echo: Long-term effects from April’s supply cut still play out.

Without these, expect choppy trading. Short-term traders, watch volatility. Long-term holders, HODL through the storm.

Lessons from Past Bitcoin Bear Markets

Bitcoin has seen worse. 2018 dropped 84%. 2022 fell 77%. Each time, new highs followed.

Patience pays. But manage risk now.

Trading Tips in a Bitcoin Bear Market

• Use stop-losses below key supports.
• Dollar-cost average on dips.
• Diversify beyond BTC.
• Track ETF flows daily.
• Follow Fed speakers closely.

Final Thoughts on BTC’s

Bitcoin below $95,000 feels rough. But markets cycle. The is here, confirmed by data and experts. Watch $93,000 closely. A Fed shift or deep dip could spark the next leg up.

Stay informed. Crypto moves fast. What do you think—buy the dip or wait? Share in comments.

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