"Bitcoin fell below the USD 93,000 mark this weekend, which is the lowest level in nearly six months. This decline marks one of the strongest corrections since the beginning of the year. It also reflects a shift in overall market sentiment from the risk-on optimism at the beginning of Q4 to a more cautious and defensive risk-off tone. From the peak near USD 125,000 in early October, Bitcoin has lost nearly 25% of its value,"
"The first factor putting significant pressure on Bitcoin is the shift in expectations regarding monetary policy. Throughout most of October, the market was almost certain that the Federal Reserve (Fed) would cut interest rates in December. However, recent speeches from many Fed officials indicate a more cautious stance, suggesting that conditions are not yet suitable for easing, and that the Fed wants to wait for more data before making a decision."
"Bitcoin is highly sensitive to liquidity expectations, so the digital currency immediately lost one of the most important catalysts that supported its strong rally earlier this year. When the easing narrative is temporarily interrupted, the market must adjust itself, and Bitcoin becomes one of the assets most clearly affected. The second factor that triggered a surge in selling pressure is the loss of the psychological level of USD 100,000. This is an important anchor for market sentiment."
Bitcoin fell below USD 93,000, the lowest level in nearly six months, marking one of the largest corrections since the start of the year. From a peak near USD 125,000 in early October, Bitcoin lost nearly 25% of its value, driven by selling from both retail and institutional flows sensitive to macro signals. Expectations for Federal Reserve rate cuts weakened after cautious comments from officials, keeping the U.S. dollar stable and removing a key liquidity catalyst. Loss of the psychological USD 100,000 level triggered stop-losses, leveraged liquidations and algorithmic selling, amplifying volatility and downward pressure.
Read at London Business News | Londonlovesbusiness.com
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