- Bitcoin’s price has fallen sharply, dropping below $90,000 from its October peak near $126,000.
- The combined cryptocurrency market lost about $1 trillion, falling to $3.26 trillion, entering bear market conditions.
- Experts link the decline to uncertainties around U.S. Federal Reserve policies and overall stock market weakness.
- Some analysts expect further declines possibly down to $72,000–$74,000 but view this as part of a healthy market consolidation.
- Despite current losses, key players note ongoing strengths in Bitcoin fundamentals and expect potential future recovery.
Bitcoin has declined sharply from its October high, falling below $90,000 amid increasing concerns about Federal Reserve monetary policy and market liquidity. This drop marks a significant sell-off after bitcoin reached nearly $126,000 earlier last month.
The total cryptocurrency market capitalization has decreased by more than $1 trillion since its peak, dropping to around $3.26 trillion, its lowest level since early July. This 24% decline signals a shift into bear market territory, according to market analyst Alex Kuptsikevich of FxPro.
“The crypto market has set lower local lows, confirming the downward trend,” Kuptsikevich said, adding that if trends similar to stocks hold, further declines of approximately 20%, or another $1 trillion, could occur. Some traders like Arthur Hayes, co-founder of the Bitmex crypto exchange, warn that bitcoin might fall further to $80,000–$85,000 during this weak phase.
Hayes attributes the sell-off to a liquidity crunch caused by policies from the U.S. Federal Reserve and Treasury. However, he suggested bitcoin could later rally above $200,000 if dollar liquidity improves, describing bitcoin as “the free-market weathervane of global fiat liquidity.”
Other experts see the current decline as influenced more by wider financial market issues rather than bitcoin itself. Danny Scott, CEO of CoinCorner, pointed to tech sector sell-offs, concerns about Artificial Intelligence, and a bearish Federal Reserve outlook as key drivers of the recent price moves. He noted that bitcoin’s underlying fundamentals remain strong, citing recent advances such as payment company Block‘s integration of bitcoin support for its Square customers.
After falling below $100,000, bitcoin confirmed a descending price channel, with liquidity concentrated between $89,000 and $94,000, according to Arthur Azizov, founder of B2 Ventures. Azizov identified a potential support zone near $72,000–$74,000, where earlier bullish momentum propelled bitcoin close to its all-time high.
While Azizov and others remain optimistic about bitcoin’s long-term prospects, they acknowledge the ongoing downward pressure and uncertainty as the market consolidates ahead of possible future moves.
For more detailed analysis, see the original Forbes article.
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