Bitcoin Enters : BTC Price Slips Under $95K on Fed Uncertainty

Bitcoin has taken a sharp turn. The top cryptocurrency by market cap has dropped more than 24% from its peak above $126,000 hit in October. On Friday, BTC fell below $95,000 during the day’s low, matching a broader stock market sell-off. Traders worry about when the Federal Reserve will cut interest rates. By midday, Bitcoin traded just above $96,000.

What Sparked This Bitcoin Price Drop?

The decline builds on a tough month. A big sell-off last month came from leveraged trades getting wiped out and long-term holders cashing out. Now, fresh data shows bitcoin ETFs saw huge outflows on Thursday – the second biggest daily pullback ever.

No big buyers are jumping in to support the price. On-chain data backs this up. Metrics like holder behavior and transaction flows point to a clear . This means downward pressure dominates, with sellers outpacing buyers.

• Key Trigger: Leveraged liquidations forced sales.
• Added Pressure: Large holders reducing positions.
• Latest Hit: ETF outflows signal weak demand.

Expert Views: Bitcoin in Full

Research firm 10X Research crunched the numbers. They say on-chain indicators confirm Bitcoin is stuck in a . No marginal buyers – those who step in at key levels – are showing up.

“This aligns perfectly with multiple on-chain indicators we’ve been tracking,” their latest note states. They warn: if BTC breaks below $93,000, expect more downside soon.

The outlook ties to Fed policy. Without a December rate cut or softer signals ahead, no quick rally looks likely. A classic “Bitcoin Christmas rally” – where prices surge end-of-year – now seems off the table. High odds the Fed stays put on rates.

Fundstrat Weighs In: No Catalysts, Momentum Fading

Even bullish voices are cooling off. Fundstrat strategist Sean Farrell shared a cautious take. “The momentum or lack thereof for Bitcoin right now is an issue,” he told clients.

Farrell sees an “absence of catalysts.” The recent government shutdown dragged on longer than expected. New spending to boost liquidity won’t hit the economy fast. Until then, markets stay choppy.

“A revisit to the low $90K range for BTC might be enough to do the trick here.” – Sean Farrell, Fundstrat

He thinks a bigger risk-off move across assets could shake out weak hands. That reset might draw fresh buyers at lower prices.

How Fed Rate Decisions Impact Bitcoin and Crypto

The Federal Reserve holds huge sway over risk assets like Bitcoin. Rate cuts flood markets with cheap money, fueling rallies. Delays keep liquidity tight, hitting stocks and crypto alike.

Friday’s stock rout showed this link. Uncertainty over Fed timing crushed sentiment. Bitcoin often mirrors Nasdaq in these swings, amplifying moves.

Historically, Bitcoin thrives post-rate cuts. But prolonged holds test even strong hands.

Key Price Levels to Watch for Bitcoin

Traders eye these zones:

1. $93,000: Critical support. Break here opens deeper losses.
2. Low $90Ks: Potential reset zone for buyers.
3. $96,000-$95,000: Near-term battleground.
4. Upside Test: Back above $100,000 flips sentiment.

On-chain data like exchange inflows and holder distribution will signal if selling eases.

Why This Feels Different

Past bears had clear bottoms. 2022’s crash hit $16,000 amid scandals. This dip lacks that drama but shares macro pain. ETF inflows had propped BTC up earlier. Now outflows reverse that.

Still, Bitcoin’s fundamentals shine: halving cycle maturing, adoption growing. A Fed pivot could spark the next leg up.

What Should Bitcoin Investors Do Now?

In a , stay calm. Here’s simple advice:

• Dollar-Cost Average: Buy fixed amounts regularly to average down.
• Set Stops: Protect capital below key supports like $93K.
• Watch Fed Meetings: Next ones could shift everything.
• Diversify: Don’t go all-in on BTC alone.
• Zoom Out: BTC up 100%+ YTD despite this pullback.

Avoid FOMO or panic sells. Low $90Ks might offer prime entry.

Looking Ahead: End of the Bear or More Pain?

Short-term, Fed holds mean more chop. But history shows bears end. Post-halving, Bitcoin often consolidates before bull runs. If risk-off resets prices, smart money waits.

Keep eyes on ETF flows, on-chain metrics, and macro news. Bitcoin’s story is far from over.

Stay tuned for live BTC price updates and crypto analysis.

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