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

Bitcoin fell below $95,000 amid panic selling and shifting Federal Reserve rate expectations, losing 7.5% in the past week. Analysts suggest this sell-off may be a mid-cycle correction rather than the onset of a bear market, as losses haven't reached capitulation levels. Despite Bitcoin's drop, a popular analyst noted that when short-term holders experience significant losses, it can lead to panic selling; however, current conditions are not yet indicative of a macro bear market. The sentiment around the Federal Reserve's upcoming meeting is impacting market expectations, with a 56.4% chance of unchanged interest rates, contrasting the previous month’s near certainty of a rate cut. Michael Saylor of Strategy reaffirmed their commitment to purchasing Bitcoin, stating they aren't deterred by the price drop. Overall, analysts recommend caution until there are signals of market recovery and liquidity improvements. The cryptocurrency market remains under pressure, especially with altcoins faring worse than Bitcoin during this slump, raising concerns among traders about potential bear market conditions.

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