Bitcoin falls below $92,000: What's the outlook for 2025

Bitcoin falls below $92,000: What's the outlook for 2025

Bitcoin fell below the $92,000 mark on Tuesday, sparking concern among investors and analysts. The drop, which was caused by profit-taking and uncertainty over a possible Federal Reserve interest rate cut in 2025, raises questions about the future development of the most famous cryptocurrency.

At 10:26 IST, Bitcoin was trading at $92,314, down 1% from the previous day. Its intraday low was $91,317. Ethereum was also not spared as its price fell 1.8% to $3,326. The selling pressure in the market is partly due to investors realizing gains after Bitcoin surged more than 117% this year.

According to Vikram Subburaj, CEO of Giottus, Bitcoin is facing strong resistance at $93,000 and its volatility is being affected by uncertainty over Federal Reserve policy. "If Bitcoin fails to hold the $92,000 level, we could soon face a new local low below $90,000," Subburaj warned.

Edul Patel, CEO of Mudrex, pointed out that Bitcoin had gotten close to $95,000, but subsequent profit-taking brought it back to $92,400. "There has been over $259 million worth of liquidation in the last 24 hours, which has weighed on the market," he added.

Although retail investors are selling, institutional buying continues. For example, MicroStrategy purchased 2,138 BTC for the eighth week in a row, showing strong confidence in the cryptocurrency market. Patel noted: "Current market conditions suggest a potential 'January effect' as investor sentiment remains strong."

The other major cryptocurrencies also saw declines, with XRP down 3%, Solana down 0.5%, Dogecoin down 2%, Cardano down 2.7%, Tron down 2%, Avalanche down 3%, Chainlink down 3.5% and Shiba Inu down 3.4%. XRP is under pressure, with its path towards the $1.90 price appearing increasingly likely, as shown by technical indicators and weak buyer interest.

Overall, the cryptocurrency market is facing periods of volatility and uncertainty, requiring caution from investors. How the situation will unfold remains a question we will have to wait to see.

*This is not investment advice.

Good luck and success in the New Year

The Coingarage team