Bitcoin Drops to Six-Month Low as Crypto Stocks Slide, Analysts Eye Local Bottom
Bitcoin (BTC) fell to a six-month low on Monday, erasing all year-to-date gains as bearish sentiment gripped the market. BTC dropped to $92,500 in the U.S. session, down 2.4% over 24 hours and nearly 13% for the week, marking a 27% decline from its recent all-time high. Ether (ETH) hovered just above $3,000, down 2% for the day and 15% over the week, reflecting ongoing weakness across major digital assets.
Crypto-Linked Stocks Under Pressure
Equities tied to digital assets also slid. Coinbase (COIN), Circle (CRCL), Gemini (GEMI), and Galaxy (GLXY) fell roughly 7%, while corporate crypto holders saw declines: Strategy (MSTR) slid 4%, reaching its lowest level since October 2024, and BitMine (BMNR) and ETHZilla dropped 8% and 14%, respectively. Solana-linked firms Upexi (UPXI) and Solana Company (HSDT) fell 10% and 7%.
Some miners outperformed. Hive Digital (HIVE) surged 10% after its HPC subsidiary announced an AI cloud partnership with Dell Technologies, while IREN (IREN) and Hut 8 (HUT) posted modest gains.
Macro and Fed Signals
With economic reporting limited due to the government shutdown, Monday’s New York Fed Empire State Manufacturing Survey gained attention, unexpectedly jumping eight points to 18.7, well above forecasts for a decline to 6. The report increases expectations that the Fed will hold rates steady in December, with Polymarket assigning 55% odds and CME FedWatch Tool roughly 60% for a pause.
Technical Outlook
CME Bitcoin futures opened at $93,840 on Sunday, leaving an unfilled April gap at $91,970, a level that may apply short-term downward pressure. Bitfinex analysts noted that realized losses are stabilizing, signaling that Bitcoin could be approaching a local bottom. “Sustainable bottoms historically form after short-term holders capitulate into losses,” they said. This pullback is the third-largest since 2023 and the second-largest since U.S. spot BTC ETFs launched, suggesting a rebound could emerge relatively soon.
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