Bitcoin Falls Below $100,000 Again: Reasons and Hopes

Bitcoin (BTC) has fallen below the $100,000 psychological mark again, despite the end of the US government shutdown. The market is seeing high liquidations and active selling by long-term holders, causing concern among investors.

Reasons for Bitcoin's Decline

Analysts note that while macroeconomic concerns are easing, demand for cryptocurrency remains weak. The market continues to move in a downtrend and is testing key support levels.

According to CoinMarketCap, at press time, the leading cryptocurrency had fallen to a daily low of $99,277, a decline of 2.31%. Meanwhile, Ethereum also showed negative momentum, falling to $3,234, a loss of 5.88% over the same period.

Liquidations and Fear in the Market

According to Coinglass, $532 million worth of positions were liquidated in the market over the past 24 hours. Of this amount, $411 million was in long positions, indicating continued weakness among buyers. The greed and fear index is currently at 15, which corresponds to the "extreme fear" zone. This confirms market participants' low risk appetite and reluctance to take long positions at current levels.

End of the Shutdown and Its Impact

Swissblock analysts emphasize that the end of the US shutdown could reduce macroeconomic uncertainty. This, in turn, could pave the way for a return of liquidity and a recovery in demand for risky assets. However, despite this, an unusually strong divergence has been observed between Bitcoin and US stock indices, indicating a decline in correlation to the lowest levels in a year.
"The asset is beginning to show signs of a separate market trajectory and should leverage future liquidity flows to transform this independence into momentum," Swissblock experts note.

Long-Term Holders and Selling

According to analysts at CryptoQuant, long-term Bitcoin holders are actively taking profits. Over the past 30 days, approximately 815,000 BTC have been sold, the highest amount since January 2024. This indicates that long-term investors are becoming concerned about the current market situation and are considering selling.

In Conclusion

Under the current circumstances, Bitcoin continues to experience pressure from both macroeconomic factors and the actions of long-term holders. Despite the end of the US shutdown, the market remains under pressure, and demand for cryptocurrency remains weak. Investors should closely monitor changes in liquidity and market sentiment to make informed decisions. It is important to remember that the cryptocurrency market remains highly volatile, and any changes can lead to sharp price fluctuations.