Since Bitcoin reached its all-time high of $109,114, its price has gradually fallen to the current level of $96,000. The sharp slowdown in this rally has caused market concerns, especially with U.S. President Trump's tariff policies, the Federal Reserve's interest rate hike plans, and the White House's outlook on cryptocurrencies, all showing signs unfavorable to the industry.
According to Samson Mow, CEO of Bitcoin wallet company Jan3, Bitcoin is currently in a consolidation phase and experiencing a “death cross,” where the short-term trend line crosses the long-term trend line. This has caused many traders to worry about Bitcoin's future performance. FxPro Chief Market Analyst Alex Kuptsikevich also noted that the “fear and greed” index for cryptocurrencies has significantly declined since last November, indicating that market sentiment is suppressed and it's difficult to stimulate a rebound.
In addition to warnings from technical analysis, CryptoQuant analysts also noted that weakening demand and insufficient capital inflow are important factors affecting Bitcoin's future trend. Data shows that Bitcoin demand has fallen from 279,000 coins last December to the current 70,000 coins, and spot Bitcoin ETFs have not attracted enough capital inflow, instead showing net outflows.
The decrease in stablecoin demand is equally noteworthy. The market value of stablecoins like USDT has plummeted by more than 90%, reflecting a sharp decline in market demand for crypto assets. Recently, the meme coin issuance saga has also had a considerable negative impact on the crypto market, especially with the meme coin incidents involving the Trump family and Argentine President Milei, which have shattered investor confidence in the market.
Amid the current low market sentiment, Bitcoin's short-term support is considered to be around $92,000. If it fails to hold this level, the next key support will be the 200-day moving average, indicating $85,000.
