- Bitcoin price went to a low US$89,941 but recovered to US$94,330, amidst a broader crypto market sell-off.
- Over US$806 million was liquidated in 24 hours, impacting 267,889 traders across various cryptocurrencies.
- Analysts warn against optimistic buying, citing persistent inflation and uncertain monetary policy impacts on crypto prices.
- Potential further drops are anticipated if Bitcoin breaks the US$91,000 support level, with next support at US$76,000 and US$69,000.
Bitcoin briefly dipped below the US$90k mark in the early hours of Tuesday, Australian Time, registering at US$89,941 (AU$145,431). The largest crypto by market cap has since regained some of its losses, trading for US$94,330 (AU$152,530) at the time of writing.
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The broader crypto market also experienced a sell-off, with many, like Ethereum (ETH), Solana (SOL) and Cardano (ADA), all losing around 5% over the past 24 hours.
Across all assets, around US$806.45 million (AU$1.3 billion) has been liquidated, with over 267,889 traders facing forced sell-offs, as data from coinglass shows.
Ethereum longs – bets that the price of ETH continues going up – have been forcefully closed to the tune of US$145 million (AU$234.5 million), while BTC long positions suffered US$109 million (AU$176.3 million) in liquidations.
So, Is This the Dip Buying Opportunity?
Naturally you may be wondering whether now is the time to deploy all your stablecoins that you have been saving up over the past few months and go all in on the latest meme coin Bitcoin?
“Not so fast”, say the analysts at 10X Research. They believe that US inflation is too sticky and might “overshadow Trump’s inauguration”, which was generally expected to push the digital asset space higher.
And Goldman Sachs has a similar outlook on the broader economy, saying that they now “expect the Fed to cut just twice in 2025 (June and December compared to March/June/December previously), with another rate cut in June 2026”.
However, that’s even too optimistic for some, according to Reuters, Bank of America believes the time of rate cuts is (already) over:
We think the cutting cycle is over … Our base case has the Fed on an extended hold. But we think the risks for the next move are skewed toward a hike.
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Back to 10X, the analysts think Bitcoin might see further headwinds, based on the persistent inflationary worries driving investors toward higher-yield bonds, and that’s when Bitcoin could see much lower prices.
If the $91,000 support level is breached, the next significant support zones lie at $76,000 and potentially $69,000.
10X ResearchCredit: Source link
