Bitcoin ended the week under intense selling pressure, dropping below $95,000 late Friday in U.S. trading hours, marking its worst weekly performance since March. The largest cryptocurrency by market value failed to find any support throughout the week and has now fallen nearly 9%, its lowest level since May. While global market sentiment remained cautious, Bitcoin underperformed major U.S. stock indices, which managed to hold minor gains.
The downturn has affected the broader digital asset landscape. Ethereum slipped more than 11% since Monday, trading below $3,200, its weakest price range in weeks. Solana extended losses to 15%, reflecting heightened volatility across risk assets. XRP was an exception, down just 1% amid optimism surrounding the launch of its first U.S. spot ETF issued by Canary Capital. Still, the overall picture across the crypto sector remains heavily bearish.
Meanwhile, crypto-related stocks delivered mixed results following steep declines on Thursday. MicroStrategy, the publicly listed company with the largest Bitcoin holdings, continued its sell-off with a 4% drop, falling below $200 for the first time since October 2024. Mining and institutional equity names such as Bullish, BitMine, CleanSpark, MARA Holdings, and Hive Digital registered declines ranging from 4% to 7%. In contrast, trader sentiment briefly improved for Hut 8, which gained 6% after earnings results from American Bitcoin, a joint venture with the Trump family. Robinhood and Riot Platforms also rose roughly 3%, indicating selective interest among investors rather than a broader recovery.
Analysts Cite “Information Vacuum” and Policy Uncertainty
Several market analysts attributed the sharp decline to a widespread absence of critical U.S. economic data. The extended government shutdown, which lasted from October 1 until Thursday, temporarily halted the publication of inflation and employment statistics — two key indicators used by investors to understand the Federal Reserve’s policy trajectory.
Experts at Bitfinex described the current trading environment as an “information vacuum,” causing hesitation among investors. Their research note emphasized that while the shutdown was resolved, the new funding bill only keeps the government open until January 30, preventing long-term clarity. The lack of concrete economic updates has left both investors and the Federal Reserve waiting for additional signals before adjusting interest rate expectations.
With uncertainty around rate decisions and limited macroeconomic guidance, risk assets — including Bitcoin — have become vulnerable to downside pressure. The shift comes after months of sideways movement during which Bitcoin repeatedly attempted to advance beyond $120,000 but failed to sustain momentum.
A Correction That May Still Be Unfinished
Noelle Acheson, author of Crypto Is Macro Now, suggested that the current drawdown should not be viewed as unexpected. According to her analysis, Bitcoin had spent months in a tight consolidation band and required a decisive correction to reset expectations before any new upward trend can begin.
Acheson still believes the long-term narrative remains intact but argued that the market is not ready for a recovery yet. She noted that macro liquidity remains the most important driver for Bitcoin and suggested that relief could come if future policy adjustments introduce greater liquidity across risk assets. While traders no longer expect a near-term rate cut, discussions surrounding balance sheet adjustments or targeted liquidity measures may become increasingly relevant in early 2026.
Technical Signals Point Toward Additional Downside
From a technical standpoint, the correction could deepen before stabilizing. John Glover, chief investment officer at lending platform Ledn, said Bitcoin’s breakdown below the 23.6% Fibonacci retracement level — positioned at just under $100,000 — has opened a path toward the next major support near $84,000.
Glover emphasized that short-term volatility remains likely and characterized the current environment as part of a broader bear phase. According to his outlook, Bitcoin may revisit levels above $100,000 before any sustained move below $90,000 takes place. However, he does not expect a full recovery until well into the summer of 2026, suggesting a multi-month correction process rather than a quick turnaround.
A Market Tested by Uncertainty
The past week has reinforced how sensitive Bitcoin remains to changing economic conditions, market data, and expectations about monetary policy. While analysts continue to highlight long-term adoption trends, the short-term picture points to elevated volatility and possible further decline before a meaningful recovery can develop.
Investors are monitoring upcoming macroeconomic releases in hopes of reducing uncertainty. If new data helps refine expectations about the Federal Reserve’s next move, it may provide the clarity needed for risk assets to stabilize.
At the moment, however, Bitcoin faces a challenging combination of weakened sentiment, missing economic indicators, and technical breakdowns that have shifted market attention toward lower support levels. Whether the cryptocurrency stabilizes soon or continues its descent toward $84,000 will depend largely on how quickly the market regains confidence — and when clear economic signals return.
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