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

Bitcoin has recently plunged below $95,000 amidst panic selling and changing Federal Reserve expectations. Analysts suggest that this sell-off may represent a mid-cycle correction rather than the onset of a bear market, as significant losses indicative of capitulation have not yet been recorded. The current volatility is attributed to an influx of new investors, and once these short-term holders experience considerable losses ranging from 20% to 40%, panic selling tends to follow. Presently, Bitcoin trades at roughly $95,390, down 2.8% in one day and over 7.5% over the past week. Market sentiment has soured due to uncertainty regarding interest rates, with expectations shifting from a potential rate cut to a possible hold in December. Despite this, some firms remain committed to accumulating Bitcoin, underscoring their belief in its long-term value, even amid current market turmoil. Analyst insights indicate that Bitcoin's trajectory could improve if market sentiment turns favorable, suggesting potential for sustained increases in the future.

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