Bitcoin Showing Signs of Severe Collapse

"The OG cryptocurrency Bitcoin is having a horrible month. The token has wiped out hundreds of billions of dollars in total market value, dropping below $92,000 for the first time since mid-April. That's despite soaring to an all-time high of over $126,000 a mere six weeks ago. It's been a bruising couple of weeks - and nobody is entirely clear on why. Even Bloomberg admitted that "Bitcoin has fallen fast, hard, and with no clear trigger.""

"One prevailing theory is economic uncertainty over dwindling hope that the US Federal Reserve will lower interest rates next month. A lower rate usually leads to increased liquidity and more willingness to invest in more risky assets, like crypto. "The general market is risk-off," Bitwise Asset Management chief investment officer Matthew Hougan told Bloomberg. "Crypto was the canary in the coal mine for that, it was the first to flinch.""

"Experts say it's likely that there are several factors at play. "The selloff is a confluence of profit-taking by [long-term holders], institutional outflows, macro uncertainty, and leveraged longs getting wiped out," Nansen senior research analyst Jake Kennis told Bloomberg. "What is clear is that the market has temporarily chosen a downward direction after a long period of consolidation/ranging." The fall has led investors to question the long-held assumption that Bitcoin was a hedge against inflation."

Bitcoin fell sharply from an all-time high above $126,000 to below $92,000, wiping out hundreds of billions in market value over weeks. The decline occurred rapidly with no single clear trigger identified. Contributing factors include reduced expectations for Federal Reserve rate cuts, profit-taking by long-term holders, institutional outflows, macroeconomic uncertainty, and leveraged longs getting wiped out. The sell-off accompanied weakness in AI-linked equities and prompted questions about Bitcoin's role as an inflation hedge. A recent US government shutdown delayed key economic data, increasing uncertainty, and analysts warn the correction may deepen toward the low $70,000s.

Read at Futurism