Bitcoin experienced a challenging weekend, declining from around $92,000 on Thursday to nearly $87,000 by Sunday. This drop was primarily driven by reduced liquidity and selling pressure, prompting investors to adopt a risk-off stance. The decrease occurred during a period of typically low market liquidity, which amplified volatility as traders positioned cautiously ahead of anticipated economic data and central bank activities in the United States this week. Bitcoin’s price has fallen approximately seven percent this month, reflecting ongoing volatility since its historic peak in October.
Other major cryptocurrencies, including Solana, XRP, Dogecoin, and Cardano, also showed weakness, increasing their monthly losses while Bitcoin maintained a 57 percent dominance in the overall market capitalization. Trading volumes remained low, indicating investor uncertainty and cautious strategies rather than outright rejection of the market. Economic developments, particularly in the US with employment figures, inflation rates, PMI data, and Federal Reserve statements, remain in focus as they could influence interest rate expectations. Globally, Japan is also under scrutiny, with the Bank of Japan expected to raise interest rates, potentially impacting currency-driven carry trades and weakening support for risk assets like Bitcoin.
Technically, analysts are monitoring Bitcoin’s price near the $85,000 level, suggesting stability there could indicate a bounded trading range; otherwise, further declines may occur. Some analysts have speculated prices could fall by as much as 90 percent, but on-chain data contradicts these claims, showing the market is trading below fair value without signs of a major crisis. Overall, the current dip is viewed not as a long-term shift or initial sign of distress but as a temporary consolidation and possible reassessment phase. At present, Bitcoin is trading near $89,317.
Source: bitcoinmagazine
