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Why is Bitcoin Price Dropping Today?

Published by
Anjali Belgaumkar

Bitcoin price is currently down by more than two percent and on Sunday, the coin reached a low of $92,941. BTC has now reversed and is trading above the $93k level. “After the post-Christmas market-wide dip, crypto markets are seeing an encouraging trend of whales moving stablecoins to exchanges,” Santiment reported. 

Historically, Q4 has been a strong period for Bitcoin and altcoins, which aligns with market cycles. We’re currently experiencing a cooldown, which is common after a halving event, like the one that happened in 2024. Following the halvings of previous years (2012, 2016, and 2020), Bitcoin experienced significant rallies in the subsequent year.

External factors, such as global liquidity and government actions, will also influence the market. With Janet Yellen’s recent announcement that the U.S. will hit the debt ceiling in mid-January, more money printing and quantitative easing are likely. This creates favorable conditions for assets like Bitcoin. 

Looking ahead, January is expected to be a fairly quiet month, with the real action starting in February. Historically, March tends to be a strong month, followed by a potential consolidation in April and May due to tax season. After that, the market could pick up again in the summer, continuing into Q4.

Bitcoin price shows signs of struggle, but a breakout could be on the horizon—read Bitcoin price prediction for the next big move!

What’s Next For Bitcoin?

Right now, Bitcoin is in a range, not yet fully breaking down, but it’s reacting to support and resistance levels. If Bitcoin stays below the resistance of $94,270, we could see more downside, with targets around $91,400.

However, if Bitcoin breaks above the resistance at $94,270, it could signal a change in direction. But for now, the price is still showing signs of weakness, and we’re watching for any moves below support to confirm further declines.

FAQs

What is the impact of Bitcoin halving on its price?

Historically, Bitcoin has seen significant rallies after halving events, like in 2012, 2016, and 2020, with 2024 following similar trends.

How does global liquidity affect Bitcoin’s price?

Janet Yellen’s announcement of hitting the U.S. debt ceiling may lead to more money printing, creating favorable conditions for Bitcoin.

What is the Bitcoin price outlook for January 2025?

January 2025 is expected to be quiet for Bitcoin, with major market action likely to resume in February and March, followed by potential Q4 rallies.

Anjali Belgaumkar

Writer by choice, CryptoCurrency Writer, and Researcher by chance. Currently, focusing on financial news and analysis, as well as cryptocurrency news and data. One may not call me a crypto “Enthusiast” but trust me I'm getting there.

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