Bitcoin experienced a sharp decline on Friday, slipping below the $95,000 mark in morning trading before briefly stabilizing, only to fall again later in the day. The move has sparked debate among analysts, with many cautioning that while the drop is notable, it does not yet signal the start of a macro bear market. According to CryptoQuant analyst CrazzyBlockk, the market is heavily influenced by the profitability of newer participants, whose gains and losses can drive significant short-term volatility. Historically, when short-term holders see losses between 20% and 40%, panic selling accelerates, but current levels remain below this threshold, suggesting that Bitcoin may be undergoing a mid-cycle correction rather than a full-scale downturn.
At the time of writing, Bitcoin was trading around $95,390, marking a 2.8% drop over the past 24 hours and a 7.5% decline over the past week. Liquidations exceeded $1 billion following the coin’s repeated slip below six figures, a level last breached in May. Analysts note that investor sentiment has been influenced by expectations surrounding the Federal Reserve’s upcoming meeting, with traders now assigning a 56.4% probability that rates will remain unchanged in December. Shifts in interest rate expectations historically impact Bitcoin, as rate cuts tend to make risk assets more attractive compared to safer alternatives like treasury bonds.
Meanwhile, Strategy co-founder and chairman Michael Saylor addressed circulating rumors about his firm selling Bitcoin, firmly denying them and confirming that the company’s purchases are continuing aggressively. Strategy maintains a $62.3 billion Bitcoin stockpile, and Saylor emphasized that the firm is undeterred by the recent price decline, signaling confidence in long-term accumulation.
Market observers highlight that the crypto sector has been more sensitive to pessimism than equities, with analysts at Wintermute noting that Bitcoin’s recent underperformance reflects broader macro rotation pressures. Pepperstone Research strategist Dilin Wu advised caution, observing that signs of a sustained recovery are not yet present. She emphasized that while Bitcoin could still reach new highs over the medium to long term, this depends on improving market sentiment, increased liquidity, and reduced volatility.
Overall, while Bitcoin’s recent dip below $95,000 has drawn attention, the prevailing expert view suggests it is a temporary correction within a broader bullish cycle rather than a definitive bear market. Market participants are closely monitoring liquidity trends, institutional buying patterns, and macroeconomic indicators to gauge the cryptocurrency’s trajectory in the months ahead.
