Bitcoin Falls, But Analyst Says No Bear Market Yet

Bitcoin fell below $95,000 multiple times Friday after losing 7.5% over the week. An analyst told Decrypt that the sell-off appears to be a mid-cycle correction, as losses haven’t reached capitulation levels. Market uncertainty stems from shifting Federal Reserve expectations.

Bitcoin tumbled below $95,000 on Friday morning before stabilizing briefly. Analysts noted that panic selling from short-term holders seems to have subsided, at least temporarily. “The Bitcoin market is significantly influenced by the profitability of its newest participants,” said pseudonymous CryptoQuant analyst CrazzyBlockk.

CrazzyBlockk explained that short-term holders experiencing 20% to 40% losses often trigger panic selling. “This level of pain has traditionally signaled a transition into a capitulation phase,” they said. “Given the current loss level of this cohort, we remain distant from classic bear market signals.”

If new entrants realize gains, the dip could be a “mid-cycle correction” rather than the start of a bear market, according to the analyst. Earlier on Friday, other analysts offered varied interpretations of whether Bitcoin’s fall signaled a bear market.

At the time of writing, Bitcoin was trading at $95,390, down 2.8% in the past day and 7.5% over the week. Liquidations topped $1 billion after Bitcoin dipped below $100,000 for the third time in a month—the last time Bitcoin traded below six figures was in May.

Traders now see a 56.4% chance that the Federal Open Markets Committee will leave interest rates unchanged on Dec. 9, a significant change from a month ago when traders predicted a 94% chance of rate cuts before 2026. Typically, Bitcoin and equities benefit from interest rate cuts.

Wintermute analysts noted that crypto has been negatively impacted more than equity proxies like the Nasdaq 100. Pepperstone Research Strategist Dilin Wu advised caution, stating that a sustained recovery isn’t yet visible, and that Bitcoin’s potential to challenge new highs depends on improving sentiment, returning liquidity, and easing volatility.

Source: decrypt.co

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.