Cryptocurrency markets experienced renewed selling pressure, leading Bitcoin to fall below $90,000 after failing to sustain its strong gains from the start of the week.
Despite the Federal Reserve's interest rate cut, which was in line with market expectations, and its resumption of Treasury purchases, a weakening risk appetite reversed much of the recovery seen on Tuesday.
Overall market weakness resulted in over $514 million in leveraged positions being liquidated in the last 24 hours. Increased volatility in derivatives markets contributed to deeper weekly losses in major tokens.
This pullback follows a brief surge in Bitcoin above $94,500 on Tuesday, which had triggered a minor short squeeze. However, this upward movement was unable to break through the resistance zone that has held firm for the past three weeks. Bitcoin has now returned to the narrow, sideways range it has maintained throughout the month, with low liquidity and liquidation clusters continuing to influence price fluctuations.
Market Analysis and Outlook
FxPro Senior Market Analyst Alex Kuptsikevich noted in his assessment that higher local lows and highs have been observed since November 21. He stated, "Nevertheless, for this recovery to be classified as the beginning of a true market valuation, the total crypto market capitalization needs to surpass $3.32 trillion." The current global crypto market capitalization stands at approximately $3.05 trillion, representing a 2.5% increase from the beginning of the week, but it remains below Tuesday's local peak of $3.21 trillion.
In a note published earlier this week, QCP Capital projected a wider trading range for Bitcoin, estimated between $84,000 and $100,000, by the end of the year. The firm cited declining liquidity and persistent position imbalances as key factors influencing this forecast.