Bitcoin Price Craters 6.5% To $96,500: What Is Going On?

Bitcoin BTC/USD prices continued their downward trajectory on Thursday, falling 6.5% over the past 24 hours as markets digest the Federal Reserve meeting the day prior.

What Happened: CoinDesk senior analyst James Van Straten highlighted that Wedneday's sell pressure totaled $2.7 billion (26,000 BTC)—the sixth-highest daily outflow this year.

While retail investors remain largely inactive, larger players are waiting patiently for optimal entry points, suggesting a bullish undertone in the market.

Trader Takes: Roman, a crypto trader, noted the 5% drop is minimal, attributing it to an overleveraged market. He sees the correction as a necessary step for Bitcoin to continue trending higher.

DonAlt, another trader, believes that while an additional leg down to $90,000 is possible, it could create attractive buying opportunities by liquidating altcoins.

Despite this, he does not view Bitcoin's current chart as bearish, emphasizing that bearish sentiment is already prevalent.

$BTC

Not a bearish chart (yet)
Even if it has another leg (as would be typical from these kinda moves) it wouldn't be

Think if we moved to $90k that'd massively liquidate alts and give great buying opportunities

Not sure that'll happen though, sentiment quite bearish already pic.twitter.com/VJ01CtqGnp

— DonAlt (@CryptoDonAlt) December 19, 2024

Javon Marks compared the current chart to Bitcoin's performance in 2023, suggesting the possibility of multiple massive rallies, potentially leading to a broader bullish breakout.

Also Read: Bitcoin Reserve Could Call US Solvency Into Question Critic Says, VanEck Exec Fires Back: ‘This Is Loserthink’

What's Next: Fed Chair Jerome Powell's statement, "We are not allowed to own Bitcoin," has added fuel to market uncertainty.

Some traders have interpreted this as a dampening of Christmas cheer, with Powell’s comments being perceived as a broader market disruptor.

Market watchers are closely monitoring whether Bitcoin can stabilize at current levels or if further declines will trigger renewed buying interest.

Read Next:

• Bitcoin ETFs Rise In Pre Market Despite Jerome Powell Says Fed Cannot Hold BTC: What’s Going On?

Image: Shutterstock