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

Bitcoin fell below $95,000 amid panic selling, losing 7.5% over the week. Analysts suggest this sell-off may be a mid-cycle correction rather than the beginning of a bear market, as losses have not reached capitulation levels. The market's volatility is influenced by newer investors' profitability, and panic selling often begins when short-term holders experience losses of 20% to 40%. Currently, these losses do not signal the transition to a bear market. Trading sentiment is affected by changing Federal Reserve expectations; the likelihood of unchanged rates is now viewed at 56.4%, a shift from previous expectations of a rate cut. Despite the downturn, firms like Strategy remain committed to buying Bitcoin, with their Executive Chairman affirming an ongoing acquisition strategy. However, overall market pessimism is evident, with cryptocurrency struggling more than equities, as evidenced by substantial liquidations and declining institutional appetite. Analysts urge caution in the short term, while remaining optimistic about Bitcoin's long-term potential if liquidity and market sentiment improve.

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