Bitcoin Update: Federal Reserve's Balancing Act and Death Cross Indicate Extended Bitcoin Downturn
- Bitcoin fell below $91,000 amid $3B ETF outflows, technical "death cross" signals, and shifting Fed policy expectations. - BlackRock's IBIT saw record $523M outflows, while Mubadala tripled Bitcoin holdings despite market volatility. - Fed officials split on December rate cuts (46% chance now vs. 93.7% earlier), with Waller citing weak labor markets. - Stablecoin balances hit 11-month lows, Nansen traders added $5.7M short positions, and XRP derivatives stagnated. - Bitcoin and Ethereum entered technical
Bitcoin’s recent drop below $91,000 has heightened worries about a larger market downturn, fueled by a mix of ETF withdrawals, changing expectations for Federal Reserve policy, and negative technical trends. The cryptocurrency’s losses have been deepened by
The Federal Reserve’s tightening measures have become a major talking point. Fed Governor Christopher Waller, who supports a 25-basis-point rate reduction at the December 9–10 meeting,
Technical signals are also highlighting a bearish outlook. Bitcoin’s 50-day and 200-day exponential moving averages
The recent selloff has also revealed weaknesses within the crypto sector. Tom Lee from Bitmine Immersion cautioned about financial shortfalls at two leading market makers, while the XRP derivatives market remains sluggish, with
With the Fed’s December meeting approaching, investors are divided. While Waller’s dovish approach and Abu Dhabi’s aggressive investments provide some optimism, the broader economic environment—including political influences on the Fed and unresolved macroeconomic risks—suggests caution. For now, the market seems to be bracing for an extended downturn, with major support levels and institutional moves likely to determine the next trend.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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