Bitcoin Plunges to Six-Month Low Amid Market Uncertainty
The cryptocurrency market witnessed significant turbulence as Bitcoin prices crashed to a six-month low on Monday, pressured by diminishing expectations of an interest rate cut by the US Federal Reserve next month. The world's largest cryptocurrency fell to an intraday low of $92,971.17, its weakest level since late April, before settling at $95,165 with a 0.5% decline.
Extended Losses and Market Impact
Bitcoin has experienced a challenging period with prices declining more than 10% in the past seven days, marking the third consecutive weekly loss. This substantial pullback has erased over 30% of the gains accumulated since the beginning of this year, a significant setback for investors who witnessed the token reach a record high of above $126,000 in October.
The broader cryptocurrency market mirrored Bitcoin's downward trend. Ethereum prices slipped 0.88% to $3,180.08, while Solana fell 0.34% and Dogecoin lost 1%. However, XRP managed to buck the trend, rising 0.53% amid the general market decline.
Expert Analysis: Multiple Factors Driving the Decline
Market experts point to several interconnected factors contributing to Bitcoin's sharp correction. Edul Patel, CEO of Mudrex, highlighted that inflation concerns resurfaced in the US after President Trump signaled tariff cuts to ease food prices, adding short-term volatility to the market.
"However, a positive sign is emerging as whales and market makers have increased long positions since last week, actively buying the dip below $100,000," Patel noted, suggesting institutional confidence at lower price levels.
Avinash Shekhar, Co-Founder & CEO of Pi42, provided deeper insight, explaining that the drop was "less about a single trigger and more about a market digesting overstretched sentiment, thin liquidity and rotating narratives."
Shekhar added that while attempts to stabilize near $95,000 are visible, "every rebound is meeting supply as both institutional and retail participation remain muted." He emphasized that recoveries in such phases are typically "slow, uneven and driven by clearer improvements in liquidity."
Institutional Pullback and Market Dynamics
A Bloomberg report revealed that several of the largest buyers have stepped back over the past month, including exchange-traded fund allocators and corporate treasuries. This withdrawal has removed a key source of flow-driven support that previously helped push Bitcoin to record highs earlier this year.
Simultaneously, a pullback in high-growth technology stocks has dampened overall risk appetite across financial markets. The uncertainty has been further compounded by the US government shutdown, which has delayed key economic data releases and kept uncertainty around the interest rate path elevated.
Bitcoin Price Outlook and Key Levels
According to CoinSwitch Markets Desk, Bitcoin price is currently holding firm above the $93,000 support zone while facing near-term resistance at $95,000 and a stronger ceiling at $96,000 – $96,500.
"Until a clear macro catalyst or fresh institutional flows emerge, Bitcoin may continue moving sideways. Traders should manage risk and wait for confirmed signals before taking new positions," advised CoinSwitch Markets Desk.
Edul Patel identified that resistance for Bitcoin prices remains around $99,000, while a new support is forming at $92,700, indicating improving stability and early signs of a potential trend reversal.
This year has seen pronounced volatility for Bitcoin, which accounts for nearly 60% of the crypto market's roughly $3.2 trillion capitalization. Prices previously fell to around $74,400 in April after US President Donald Trump announced tariffs, before rebounding to new highs ahead of the latest retreat.
