Bitcoin faces profit-taking pressure, dropping below key $92K support.
Macroeconomic uncertainties and rising bond yields weigh on crypto market.
Bitcoin (BTC) has entered a consolidation phase, raising questions about its trajectory as 2025 approaches. After reaching an all-time high of $108,278 just two weeks ago, Bitcoin has experienced a sharp decline, now trading at $91,800, down 1.8% in the past 24 hours and over 14% from its peak.
BTC Price Chart, Source: Sanbase
The downturn comes amid weak U.S. macroeconomic data and profit-taking by long-term investors, who have cashed out over $1.2 billion on a seven-day moving average. The Chicago PMI has hit its lowest reading since May, indicating economic slowdown fears, while the Federal Reserve’s decision to pause rate cuts until March has further unsettled markets. Additionally, President-elect Donald Trump’s upcoming inauguration and rising bond yields have added to the risk-off sentiment.
Moreover, Bitcoin’s struggles are mirrored across the cryptocurrency market. Ethereum (ETH) has dropped 0.7% to $3,320, while Solana (SOL) has shown relative strength, with its SOL/BTC ratio rising 0.35%.
And Crypto-related stocks have also felt the heat. MicroStrategy (MSTR) and Coinbase (COIN) fell 7% and 5.3%, respectively, while major mining firms like Marathon Digital (MARA) and Riot Platforms (RIOT) saw declines exceeding 7%.
How Will BTC Start Off The Year 2025?
Despite the slump, some remain optimistic. Analysts point to historical trends following Bitcoin halving events, often seeing price rallies in subsequent years. However, technical indicators show potential downside risks, with Bitcoin forming a bearish head-and-shoulders pattern and testing key support levels around $91,430.
January is expected to be quiet, with market activity likely picking up in February. While challenges persist, factors such as increased institutional adoption and potential economic stimulus could provide a favorable backdrop for the Bitcoin recovery.
For now, traders remain cautious, closely monitoring support and resistance levels, as Bitcoin’s performance continues to influence broader market sentiment.
Highlighted News Of The Day
XRP Drops 5% While RLUSD Stablecoin Surges Amid USDT Regulatory Issues
