Bitcoin Plunges Below $95K: Signs of a New Bear Market Regime Emerge Amid Fed Uncertainty

Bitcoin’s Sharp Decline Sparks Bear Market Fears

Bitcoin has taken a tough hit lately. The top cryptocurrency dropped below on Friday, extending losses from its all-time high of over $126,000 back in October. This marks a drop of more than 24% from the peak. Traders are watching closely as this move signals what experts call a .

The price slip happened during a broader stock market sell-off. Investors are nervous about the Federal Reserve’s next steps on interest rates. By midday Friday, Bitcoin was hovering just above $96,000, but the downside pressure remains strong.

What Triggered This Bitcoin Price Drop?

Several factors are piling up against Bitcoin right now. First, data shows huge outflows from Bitcoin exchange-traded funds (ETFs). Bloomberg reported these outflows hit the second-highest daily level on Thursday. When big investors pull money from ETFs, it adds selling pressure on the price.

Second, last month’s big sell-off still lingers. It started with leveraged liquidations—where over-borrowed traders get forced to sell—and sales from long-term holders. These whales dumping coins shook the market.

Now, research firm 10X Research points out there’s no major buyer stepping in to catch the dip. Their data matches on-chain indicators, which track wallet activity and transactions on the Bitcoin network. All signs point to Bitcoin entering a .

“This aligns perfectly with multiple on-chain indicators we’ve been tracking, which confirm that Bitcoin is in a bear market regime,” 10X Research noted.

Key Support Levels to Watch for BTC

10X Research warns that if Bitcoin breaks below $93,000, it could fall even more in the short term. Without a Federal Reserve rate cut in December or more dovish signals soon, they see no quick rally ahead.

• $93,000: Critical support level. A break here opens the door to deeper losses.
• Low $90K range: Some strategists think this could reset valuations and attract buyers.
• No December rate cut: Kills hopes for a traditional Bitcoin Christmas rally.

The Fed’s hold on rates removes a big catalyst for risk assets like crypto. Higher rates make safer investments like bonds more appealing, pulling money away from volatile assets.

Expert Views: Even Bulls Turn Cautious

Fundstrat strategist Sean Farrell, usually optimistic, has shifted to caution. He told clients that Bitcoin’s lack of momentum is a real problem.

“I think we also are in a scenario where there’s just an absence of catalysts,” Farrell said.

He notes the recent government shutdown dragged on longer than expected. While renewed spending might boost liquidity later, it won’t happen fast. Farrell suggests a dip to the low $90K area could shake out weak hands and bring fresh buyers.

“A broader risk-off event could reset valuations and bring buyers back in,” he added. “I think that a revisit to the low $90K range for BTC might be enough to do the trick here.”

Understanding a in Bitcoin

What does really mean? In simple terms, it’s when selling dominates buying over time. Prices trend down, fear grows, and holders wait for better days. For Bitcoin, on-chain metrics like declining active addresses, rising exchange inflows, and fewer new investors confirm this shift.

Historically, Bitcoin bear markets follow big bull runs. After 2021’s peak near $69,000, BTC fell over 70% to $15,000. Today’s drop is milder so far, but the regime feels similar without positive news.

How Fed Rate Decisions Impact Crypto Prices

The Federal Reserve’s moves ripple through all markets, including crypto. Rate cuts lower borrowing costs, encourage spending, and boost risk appetite. Bitcoin thrives in low-rate environments as investors chase higher returns.

Right now, uncertainty rules. Markets priced in cuts, but strong economic data might delay them. No cuts mean tighter liquidity, hurting Bitcoin’s rally chances. This links crypto to traditional finance more than ever, thanks to ETFs.

Broader Market Context: Stocks and Crypto Move Together

Friday’s stock rout amplified Bitcoin’s pain. Tech stocks and indexes like the S&P 500 fell on Fed worries. Crypto often mirrors these moves, especially with institutional money flowing via ETFs.

The government shutdown added fuel. Longer delays mean slower fiscal stimulus, delaying economic liquidity that could lift assets.

What Could Reverse the Bear Trend?

Investors hope for these catalysts:

1. Fed signals dovish policy or actual rate cuts.
2. ETF inflows resume as prices stabilize.
3. A risk-off flush to low $90Ks shakes out sellers.
4. Positive macro news like strong holiday spending data.

Long-term, Bitcoin’s fundamentals remain strong—fixed supply, growing adoption. But short-term, patience is key in a .

Lessons for Bitcoin Investors in Tough Times

Bear markets test resolve. Avoid leverage to dodge liquidations. Dollar-cost average if you’re bullish long-term. Watch on-chain data for buyer signals. And stay informed on Fed meetings—they drive the bus right now.

Bitcoin below feels painful, but history shows bears end with massive bulls. The question is timing.

Stay Ahead: Track BTC Price and News

Keep an eye on Bitcoin’s key levels and Fed updates. A break below $93K could mean more downside, but a bounce might signal relief. In crypto, volatility is the name of the game.

What do you think—deeper correction or quick rebound? Share your views in the comments.

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