Bitcoin Takes a Nosedive
Bitcoin’s price slid over 1% today, failing to keep its $94,000 ice‑break. The dip sent a ripple through the altcoin world, with Ethereum and XRP trailing behind at roughly 3% down.
Why the Shake‑up? Risk‑Averse Tides
- There’s no big catalyst lighting the way forward.
- Investors are playing it safe, making risk assets lose appeal.
- Downturns in the stock market are pulling the crypto market down the same path.
Futures & ETFs Feeling the Chill
The Bitcoin futures market hasn’t warmed up. According to CoinGlass, open positions have shed $10 billion in the last month.
Meanwhile, Bitcoin ETFs drained >$700 million across the last two trading sessions per SoSo Value.
Rate‑Cut Rumors on Hold
After the U.S. labor market beat expectations—256,000 jobs added and unemployment slipping in December—markets have dialled down the chances of a mid‑year rate cut.
- CME FedWatch shows a below 30% chance of a 25‑bps cut next May.
- With borrowing costs likely staying high for longer, risky assets struggle to climb.
Bitcoin’s Resilience in a Negative World
Though the mood remains gloomish, Bitcoin has historically hit new highs in spite of such sentiment since 2022. The crypto crew is waiting for clear signs that the economy can still hustle under tight monetary conditions.
- Expect a regulatory shift? That could give Bitcoin the push to bounce back.
- With hopeful sights on new highs, the market feels the spark of possibility.
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