Bitcoin Is Falling, But Don't Call It a Bear Market Yet

Bitcoin dropped below $95,000 amid panic selling and shifting U.S. Federal Reserve rate expectations, losing 7.5% over the week. Analysts believe the sell-off is more a mid-cycle correction than the onset of a bear market, as current losses have not reached capitulation levels. Market anxiety stems from a shift in expectations regarding interest rates, now suggesting a 56.4% chance of the rate staying the same, a stark contrast to the 94% chance for a cut just a month ago. Popular analyst CrazzyBlockk noted that when short-term holders face losses of 20% to 40%, panic selling often begins, but current loss levels indicate a distance from the typical bear market signals. If new investors can achieve gains, this could stabilize prices, allowing for potential market recovery. At the time of reporting, Bitcoin was trading at $95,390, having dropped 2.8% in the past day and over 24% since its peak about five weeks prior. With over $1 billion in liquidations during recent downturns, the market remains uncertain. Amidst this backdrop, key figures expressed continued confidence in Bitcoin's long-term viability amid growing market challenges.

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