Bitcoin (BTC) price falls below $93,000 in cryptocurrency sell-off; The trader sees a short-term bounce

Bitcoin (BTC) erased all of its early 2025 highs on Wednesday, as macro turmoil and a global bond decline accelerated a sell-off in cryptocurrency prices.

The largest cryptocurrency fell to a session low of $92,600 during US trading hours, losing nearly 10% in two days from its Monday peak above $102,000. It has recovered some losses and was recently trading at $94,300, still down 2.5% in the past 24 hours.

Cardano’s ADA, Render’s RNDR, and Aptos’ APT led losses in the broad market index CoinDesk 20 IndexWhich decreased by 3% during the same period.

The two-day violent decline led to the liquidation of nearly $1 billion of leveraged derivatives positions across crypto assets, mostly betting on rising prices, Coinglass data He appears. The decline also temporarily pushed BTC below the level at which it started the year. At the latest price, it was up 1% from its January 1 open.

Cryptocurrency-related stocks were not bailed out. Several Bitcoin miners, including TeraWulf (WULF), Bit Digital (BTBT), Bitdeer (BTDR), IREN (IREN), and Hut 8 (HUT) suffered declines of 5%-8%. Medical device producer Semler Scientific, which adopted a BTC treasury strategy in the footsteps of MicroStrategy (MSTR), fell nearly 10% on the day and is now down more than 15% for the week and about 40% from its late December high. MSTR fell 2.2% on Wednesday.

numerous Analysts to caution Cryptocurrency traders are in for a treacherous January, with potential macro headwinds for risk assets ahead, including a hawkish Federal Reserve, a rapid rise in long-term government bond yields, sticky inflation readings and the possibility of a US government shutdown. What looked like the beginning of a pullback across all assets was strong US economic data released on Tuesday that prompted investors to scale back their expectations for interest rate cuts this year.

It is worth noting that Federal Reserve Governor Christopher J. Waller out on Wednesday to support further interest rate cuts through the year and ease inflation fears from potential tariffs enacted by incoming President Denal Trump. However, this did not change investors’ interest rate expectations much, as… CME FedWatch Show.

Minutes from the Federal Reserve’s latest policy meeting were released Wednesday afternoon during business hours, US time Show Most believed that upside risks to inflation had increased and also showed some concern that Trump’s tariff policy could have a greater impact on price levels than previously assumed.

Bitcoin bounce incoming?

With Wednesday’s decline, Bitcoin returned to the lower end of its range it has traded since late November. Bitcoin is likely to see a bounce from its lows in the coming days, but prices may continue to consolidate its range and possibly retreat to lower levels before hitting all-time highs, according to well-followed cross-asset trader Bob Lucas, founder of Station3. New York City.

“We don’t have to be extremely bearish, but we may need to mess around in a range and get more comfortable with $100,000 prints before we can really leave this area behind us,” he said in a statement. Share X.

Friday’s US non-farm payrolls data report and the Federal Reserve’s meeting later this month will influence Bitcoin’s path, hedge fund QCP noted in a Telegram broadcast, anticipating a bounce as Trump’s inauguration approaches on January 20.

“With market expectations rising, we believe Bitcoin’s decline is only a temporary pause, paving the way for a bullish rally as Trump’s inauguration fuels optimism,” QCP analysts said.