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

Bitcoin fell 21% to around $99,000 amid a broad market sell-off, leading to over $2 billion in liquidations. Analysts attribute this downturn to a strengthening U.S. dollar, tightening liquidity, and the ongoing government shutdown. Experts declare key support levels for Bitcoin between $98,000 and $85,000, with a long-term price target of $200,000 still in sight. The overall crypto market capitalization has decreased to $3.44 trillion, marking its lowest in four months. Despite the downturn and negative sentiment, some on-chain data indicates that many investors continue to buy dips confidently. Bitcoin's significant decline has raised questions about whether this trend marks a deeper bear market or a healthy reset for future growth in the crypto space. As risk appetite wanes, most risk assets, including equities, have also seen significant declines, highlighting a shift in market dynamics towards more conservative investment strategies.

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