Bitcoin loses momentum and holds around $96,000
Written by Antonio Di Giacomo, Senior Market Analyst at XS.com
Bitcoin has shown a bearish trend recently, trading around $96,000 after reaching an all-time high of $109,000 in January 2025. Although it experienced a brief rebound on Wednesday, its price fell again, reflecting market uncertainty. The cryptocurrency has lost 12% from its peak, with a 2.5% decline in the past week. This behavior aligns with a broader bearish market influenced by macroeconomic factors.
One of the main factors affecting Bitcoin is the recent U.S. inflation report, which showed a 3% year-over-year increase in January, exceeding expectations. This data triggered market volatility, also impacting digital assets. Additionally, the Federal Reserve’s monetary policy, maintaining a 2% annual inflation target, and the new import tariffs imposed by Trump have raised concerns about economic growth and financial market stability.
Bitcoin’s decline has also been exacerbated by tightening regulations in various jurisdictions. In Europe, new cryptocurrency regulations have imposed stricter transparency requirements for exchanges, leading some investors to withdraw their funds. In Asia, China has reinforced its restrictive stance, further limiting access to cryptocurrency markets and reducing trading volume in the region.
Another key factor has been the behavior of institutional investors, who have reduced their exposure to the crypto market in search of safer assets. Geopolitical uncertainty and stock market fluctuations have led to a shift in investment strategies, decreasing Bitcoin demand in the short term. However, some analysts suggest this correction is an opportunity for accumulation before a future rebound.
Despite the decline, Bitcoin’s ecosystem continues to show signs of long-term growth. Institutional adoption is advancing, with major companies and investment funds exploring new ways to integrate Bitcoin into their portfolios. Additionally, the development of blockchain infrastructure and the growing acceptance of cryptocurrency payments continue to strengthen the utility and fundamental value of the digital asset.
In conclusion, Bitcoin’s drop to the $96,000 zone reflects macroeconomic, regulatory, and market behavior factors. While volatility remains an inherent feature of the crypto sector, long-term adoption, and blockchain technology evolution may signal optimism for investors with a forward-looking perspective in this dynamic market.
Zaid Barem / ymm