Crypto Selloff Pushes Bitcoin Below $93K, Though Analysts Predict a Short-Term Recovery.

Bitcoin Tumbles Below $93K Amid Macro Pressures; Traders Eye Short-Term Recovery

Bitcoin (BTC) surrendered its early-2025 gains on Wednesday as rising global bond yields and macroeconomic concerns sparked a sharp sell-off across crypto markets.

The leading cryptocurrency fell to an intraday low of $92,600 during U.S. trading hours, marking a nearly 10% drop over two days from its Monday high above $102,000. BTC has since clawed back some losses, trading at $94,300, but remains down 2.5% over the past 24 hours.

Other major cryptocurrencies also faced steep declines, with Cardano’s ADA, Render’s RNDR, and Aptos’ APT leading losses in the CoinDesk 20 Index, which fell more than 3% over the same period.

Broad Sell-Off Hits Crypto and Related Stocks

The downturn triggered the liquidation of nearly $1 billion in leveraged positions across crypto markets, predominantly affecting long trades, according to data from CoinGlass. Despite the pullback, BTC remains up approximately 1% year-to-date.

Crypto-related equities also took a hit, with several bitcoin miners—including TeraWulf (WULF), Bit Digital (BTBT), Bitdeer (BTDR), Iris Energy (IREN), and Hut 8 (HUT)—posting losses between 5% and 8%. Meanwhile, Semler Scientific, a medical devices firm that adopted bitcoin as a treasury asset, plunged 10% and is now down 40% from its late-December peak. MicroStrategy (MSTR), another bitcoin-heavy company, fell 2.2% on the day.

Macro Challenges Weigh on Sentiment

Investors are bracing for a challenging January as macroeconomic pressures mount. Key concerns include a hawkish Federal Reserve, surging long-term bond yields, persistent inflation, and a potential U.S. government shutdown.

Tuesday’s stronger-than-expected U.S. economic data further dampened market sentiment, prompting traders to revise their expectations for rate cuts in 2025. Fed Governor Christopher J. Waller attempted to reassure markets on Wednesday, signaling support for additional rate cuts, but his comments did little to shift investor outlooks, as shown by CME’s FedWatch tool.

Adding to uncertainty, minutes from the Federal Reserve’s last policy meeting highlighted concerns about rising inflation risks and the potential economic impact of President-elect Donald Trump’s proposed tariff policies.

Outlook: Consolidation Before a Bounce?

Bitcoin’s recent decline brings it back to the lower end of its trading range, which has held since late November. Analysts see potential for a short-term rebound, though the market may remain rangebound in the near term.

“We could see a bounce from these levels, but BTC may consolidate further before setting new highs,” said Bob Loukas, founder of Station3 NYC. “The market needs time to digest $100K prints before making a decisive move upward.”

Looking ahead, key catalysts include Friday’s U.S. non-farm payroll report and the Federal Reserve’s upcoming policy meeting. QCP Capital anticipates renewed bullish momentum as Trump’s January 20 inauguration approaches.

“This pullback looks like a healthy reset,” QCP analysts said in a Telegram update. “We expect optimism to return and drive a rally as Trump’s inauguration fuels positive sentiment.”