Bitcoin Bounces Back to a Rough Spot – Dropping ~2%
After a brief two‑day climb, Bitcoin’s price took a bite out of itself today, slipping back below the $100,000 mark. The dip sent a ripple through the altcoin sea, with Ethereum struggling to recover its $3,500 level.
Why the Slide? The Holiday Chill
- Low liquidity = big moves. The market’s on holiday mode, so there are fewer traders flipping coins.
- It’s the usual year‑end slump. 2021 and the last week of 2024 have been rough for Bitcoin, so the seasonal vibe is playing its part.
- Fed news matters. Everyone’s sniffing around the Fed’s plans for rate cuts. A slow pace of cuts? That keeps risk appetite low.
- New data rain. Negative economic releases early in the week added extra dampness to an already wet market.
Rate Cut Horizon Looks Do‑Not‑Go
Market chatter? It’s almost a death knell for a January cut – under 8% chance. March? Around 43%. This means investors are waiting for brighter data before the risk appetite can perk back up, which in turn could lift the crypto tide.
Trump’s Crypto Checklist
Some folks are hoping the former President will roll out the big‑tick politics he promised, like clearer regulations. Until we see tangible moves—a real framework that sets the tone for banks and the rest of the ecosystem—confidence stays on standby.
Futures Market: The Dark Side of Hopes
- Open interest dipped below $60B for the first time in two weeks. That’s a sign traders are losing muscle.
- The long/short ratio slid under the 1 mark after two days of a brief swap‑over. If the trend keeps going, a longer bearish run could follow.
- But futures are mood‑ring. One market twist can flip the script, so keep your eyes peeled.
Bottom Line
Bitcoin’s decline isn’t a story of pure doom. It’s a mix of seasonal vibes, muted risk appetite, and a waiting‑list for policy clarity. Stay on the ball for the next big move—could be a bounce back, or it could keep sliding further. Hang tight!
