Crypto, Stocks Fall as Traders Pivot: How Low Can Bitcoin Go?

Bitcoin recently fell 21% to $99,000, marking a significant decline driven by dollar strength and liquidity constraints, with analysts noting potential support levels between $98,000 and $85,000. The market shifted amid a broader sell-off affecting both cryptocurrencies and stocks, leading to a total market cap decrease to $3.44 trillion. Factors contributing to this decline include a strengthening U.S. dollar and ongoing government shutdown concerns, which have left investors apprehensive. Despite these pressures, some experts maintain a long-term outlook for Bitcoin at $200,000, highlighting that recent drops are sentiment-driven rather than indicative of lower network fundamentals. On-chain data reveals strong hash rates and significant stablecoin inflows, signaling potential opportunities for recovery as buying sentiment persists among traders. Furthermore, total daily liquidations exceeded $2 billion, confirming the intensity of the recent downturn, as Bitcoin nears crucial support levels amidst a changing investment landscape.

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