Bitcoin’s value slipped toward the $90,000 mark on Thursday, reflecting broader weakness in risk appetite across the cryptocurrency markets. This downturn came after a brief rebound on Tuesday, when major cryptocurrencies experienced a momentary spike. Despite the Federal Reserve’s widely anticipated rate cut and the resumption of Treasury purchases, market sentiment remained cautious.
Currently, Bitcoin is trading around $90,250, marking a 2.4% decline over the past 24 hours. Other major tokens also saw losses during this period, with Ether down by 3.4% at $3,208, Solana slipping 5.8% to $131.20, and DOGE dropping 5.5% to $0.1380. CoinGecko data indicates that nearly every large-cap token has negative returns over the last week, with XRP losing 8.6%, ADA falling 7.2%, and BNB down by 5.9%.
The recent pullback follows a spike above $94,500 earlier in the week that caused a minor short squeeze. However, this momentum proved insufficient to overcome established resistance levels that have constrained Bitcoin’s price for the past three weeks. Following this rejection, Bitcoin has retreated into a mid-range level that has been characterized by thin market depth and liquidation clusters affecting price stability.
Analysts are reflecting on the recent market developments, noting a sequence of local highs and lows since November 21. Alex Kuptsikevich, a senior market analyst at FxPro, pointed out that for the current rebound to be classified as the beginning of significant capitalization growth, Bitcoin would need to exceed a market cap of $3.32 trillion, which is about 6% higher than current levels. As it stands, the global crypto market cap is around $3.16 trillion, a 2.5% increase from earlier in the week but still below Tuesday’s local high of $3.21 trillion.
The impact of leverage has also been pronounced in the recent market activity, with data from CoinGlass indicating that $376 million in long positions were forcefully closed within 24 hours—nearly three times the $138 million worth of short liquidations. This occurred as Bitcoin fell below its short-term trend line, highlighting the influence of leveraged trading on price movements.
Macroeconomic conditions are contributing to heightened uncertainty. While the Fed’s recent rate cut was expected, policymakers are signaling fewer reductions in the coming two years, revealing divisions within the committee regarding future monetary policy.
Market participants at QCP Capital have advised clients to anticipate wider trading bands for Bitcoin between $84,000 and $100,000 as the year draws to a close, attributing this to a combination of reduced liquidity and persistent positioning imbalances. Bloomberg Intelligence strategist Mike McGlone has added to the cautious outlook by suggesting that a traditional “Santa Claus rally” is unlikely to materialize, predicting that Bitcoin could end the year below $84,000.
Traders are closely monitoring whether Bitcoin can hold its position in the $90,000 to $91,000 range, a support zone tested multiple times over the preceding month. A decisive breach below this level could expose the lower boundary of the current trading range, while sustained stability in this area might lead to another challenge against the resistance at $94,000 as the market recalibrates in the wake of the Fed’s actions.
