Bitcoin Price USD Falls Below $91,000 Amid Market Uncertainty
The bitcoin price usd decline is attributed to a combination of factors, including macro-driven uncertainty, a slowdown in institutional demand, and a weakening US economy. Despite this, some analysts remain bullish on the cryptocurrency's long-term prospects, citing increasing institutional ownership and potential for long-term investment.
Bitcoin's value has plummeted to a low not seen since late November, falling under $91,000, after nearly 90 days of range-bound trading, with analysts citing a lack of momentum and macro-driven uncertainty as key factors contributing to the decline.
The cryptocurrency's downturn has triggered a significant cascade of liquidations, with over $961 million in the past day, primarily affecting long Bitcoin bets. This contraction and consolidation across major crypto assets are attributed to the stalled market, which is also influenced by the stagnation in traditional financial markets and a slowdown in institutional demand for Bitcoin through spot exchange-traded funds.
The broader crypto market has also been impacted, with Solana (SOL) experiencing a substantial decline of 16% in a day and 35% in a month, due to concerns over the memecoin market and the LIBRA token launch. Despite this short-term price action, some analysts remain optimistic about Bitcoin's long-term prospects, with a Standard Chartered analyst predicting that the cryptocurrency could reach $500,000 by the time Donald Trump leaves office.
The analyst's prediction is based on recent regulatory filings showing institutional ownership of spot bitcoin ETFs, which is expected to attract more long-term, long-only money, including sovereigns, to buy bitcoin. Meanwhile, the Solana ecosystem is facing uncertainty due to the LIBRA token launch and the upcoming SOL unlock event, which may increase the circulating supply of SOL and impact market dynamics.
As the market continues to trade sideways, traders are adopting a buy-on-the-dip strategy, building positions for a longer-term investment. The 50-day and 200-day EMAs are key levels to watch, with the $90,000 level offering significant support. A potential break below $88,000 could lead to a drop to $75,000, but buyers are expected to step in, awaiting a breakout.
