Bitcoin (BTC) continued its negative trend this Thursday, falling below the key psychological level of $100,000. The drop occurred during the afternoon on the U.S. East Coast. This move highlights the Bitcoin weakness during U.S. hours, a pattern recently noted by market analysts.
The leading cryptocurrency had reached a high of $104,000 overnight. However, it reversed course and is now down 1.7% in the last 24 hours. The fall coincided with a broad decline in risk assets. The Nasdaq fell 2% and the S&P 500 dropped 1.3%. Crypto-linked companies were hit hard. Bitdeer (BTDR) plummeted 19%, while Bitfarms (BITF) fell 13% and Cipher Mining (CIFR) lost over 10%.
This market retreat comes as investors grapple with the idea that the Fed seems unwilling to cut interest rates in December. Paul Howard, senior director at the trading firm Wincent, noted that “crypto is closely linked to macro-economics”. The analyst believes the odds of a December rate cut are now only 50/50.
Have We Already Seen Bitcoin’s 2025 All-Time Highs?
Market sentiment appears to be shifting. Howard expects BTC to remain muted near current levels for the rest of the year. “My sense is, with just six weeks left, we’ve seen the all-time highs for 2025,” he stated. On the other hand, the current liquidity crunch, exacerbated by the recent government shutdown, is also impacting risk markets.
Market-watcher Mel Mattison noted that the government ran a significant fiscal surplus. This has created “one of the driest periods for fiscal liquidity.” Nonetheless, Mattison is optimistic about the future. “The flood gates are about to open,” he said. He suggests the administration will unleash a wave of spending that could drive prices higher, although the next few weeks will remain choppy.
