Bitcoin could close below $90,000 this year, analysts say. Derive.xyz estimates the probability of this happening at 50 percent. It would be the first year of losses for the most famous cryptocurrency since 2022, Reuters reported.
Bitcoin falls under pressure from the Fed and market nervousness
Bitcoin is down 4.6 percent to around $87,300 today at around 7:30 p.m. CET. At the beginning of October, it rose to a historic high of $126,223.18, but in the second week of November, it fell to a seven-month low. So far this year, it has lost around seven percent, Reuters reports.
Bitcoin is being pushed down, among other things, by the stance of some officials at the US Federal Reserve (Fed), who are recommending caution in further interest rate cuts, citing still-high inflation. This reduces expectations that the Fed will cut rates next month, which hurts risk assets, which include bitcoin.
A turnaround on the horizon? Analysts believe growth will return
However, some market participants are convinced that a turnaround in Bitcoin is not far off. Analyst Sean Farrell of Fundstrat,
Analysts also point out that even if Bitcoin ends this year below $90,000, which would be its first loss since 2022, it does not necessarily mean a long-term decline. Studies show that Bitcoin has behaved as part of a broader financial ecosystem in recent cycles, with its correlation with traditional stocks reaching as high as 0.87 in 2024-25, indicating growing interconnectedness with major markets.
Source: Reuters
