Bitcoin Dips to Two-Month Low Amid Broader Market Sell-Off
Bitcoin's price tumbled to its lowest point in nearly two months on Monday, caught in a broader sell-off of riskier assets triggered by rising bond yields and shifting expectations regarding Federal Reserve interest rate cuts. The leading cryptocurrency dropped as much as 4.4% to $90,199, a significant dip from its December peak of $108,316. Other cryptocurrencies, including Ether, also experienced declines.
Bitcoin has experienced a significant downturn over the past week, dropping from approximately $102,000 to around $90,199.
Jobs Report and Interest Rate Bets Fuel Uncertainty
The recent downturn follows a stronger-than-expected U.S. jobs report released on Friday, which led traders to scale back their bets on imminent Federal Reserve rate cuts. This macroeconomic development has contributed to a shaky start for many asset classes in 2025, including the crypto market.
Technical Indicators Flash Warning Signs
Technical analysts are also watching Bitcoin's chart patterns closely. Piotr Matys, a senior FX analyst at InTouch Capital Markets, pointed to the formation of a "head and shoulders" pattern, often considered a bearish signal. According to Matys, Bitcoin's breach below the key support level of $91,600 strengthens the technical case for a bearish outlook.
FxPro's Kuptsikevich added that if bearish sentiment prevails, Bitcoin's next support level could be around $88,000, with a potential pullback to $74,000 also within the realm of possibility.
From ETF Optimism to Market Realism
Last year saw a surge in Bitcoin's price, fueled by optimism surrounding the launch of U.S. exchange-traded funds (ETFs) tied directly to the cryptocurrency. However, that optimism has cooled somewhat in early 2025, with some analysts suggesting that investors are now seeking greater certainty around the future of crypto.
What's Next for Bitcoin?
Bitcoin's recent price decline reflects a confluence of factors, including macroeconomic shifts, technical indicators, and evolving investor sentiment. While the long-term outlook for Bitcoin remains a subject of much debate, the current market conditions highlight the inherent volatility of the cryptocurrency space and the importance of staying informed about the various forces at play.