In the last 24 hours, Bitcoin fell below the $93,000 level, ending its upward trend in recent weeks. This decline led to liquidations exceeding $430 million in the futures market. In addition, $438 million was withdrawn from spot Bitcoin ETFs in the US markets after a long hiatus. These developments have brought uncertainty to the cryptocurrency market again.
This decline in Bitcoin came on the heels of MicroStrategy’s record $5.4 billion Bitcoin purchase. However, contrary to expectations, this large-scale investment did not provide a permanent price increase. The upcoming holiday season in the US and the lack of a strong catalyst to move the markets led to the postponement of Bitcoin’s $100,000 target. Investors, on the other hand, consider this situation as worrying in terms of increasing volatility.
A similar situation is happening on the Ethereum front. It is observed that ETH's implied volatility has increased and the market has generally entered a downtrend. Analysts state that this is a natural result of corrections in overbought areas.
The pause in Bitcoin’s rise is forcing investors to follow more careful strategies. Important economic indicators, especially the US Federal Reserve’s (Fed) FOMC minutes and PCE data, can be decisive on the direction of the market. A possible surprise in these data could further increase the pressure on Bitcoin and other cryptocurrencies.
Experts say that the current pullback signals an exit from the overbought zone and the market’s search for balance. However, stronger and more concrete catalysts are needed for Bitcoin to break through the $100,000 psychological barrier.