Is This Bottom? Experts Discuss Bitcoin's 17% Drop and Recovery

Bitcoin (BTC) has entered its first seven-day fall in eight weeks due to hawkish Fed signals that have caused traders to sell the commodity, which has more than quadrupled in value this year.

Bitcoin Returns To $97,500 After Massive ETF Outflow

The market's largest cryptocurrency fell 5.3% to $92,149 on Friday after hitting a record high of $108,000 earlier in the week. Bitcoin has subsequently returned to $97,500, down 5% from Sunday.

Despite US equities' excellent performance, Ethereum (ETH) and Dogecoin (DOGE) have also suffered.

US Bitcoin ETFs have seen a large outflow, highlighting the attitude shift. Bloomberg data shows these funds had a remarkable $680 million outflow on Thursday, snapping a 15-day sequence of inflows.

A rise following Donald Trump's November 5 presidential election victory sparked crypto market volatility.

QCP Capital analysts warned that market positioning had grown “overly bullish,” making digital assets vulnerable to Federal Reserve inflation control tone.

With its chair's Powell speech on Wednesday, the US Federal Reserve may pause its easing actions, focusing on conventional financial institutions' cryptocurrency adoption.

Historical Patterns Suggest BTC Price Rebound
In a recent statement, XTB senior market analyst Hani Abuagla said that monetary policy, institutional adoption, and political events imply that Bitcoin will remain sensitive to macroeconomic and crypto-specific triggers until 2025.

According to Pepperstone Group head of research Chris Weston, short-term prudence is recommended. Weston observed that although a price crash is unlikely, Bitcoin's recent ascent has slowed, signaling a market power change.

However, market researcher Lark Davis advised investors that historical trends may indicate a resurgence in the coming days.

The expert cited December 2020, when Bitcoin fell 12% after a 77% rise but then rose 136% from $17,000 to $41,000 in 23 days.

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