The cryptocurrency market faced another turbulent weekend as Bitcoin slipped below the $108,000 mark, extending its recent losses. The world’s largest digital currency traded around $107,500 after a 2.2% drop, driven by investor caution ahead of key U.S. employment data and remarks from Treasury Secretary Scott Bessent hinting at possible interest rate cuts. Ethereum also fell 3% to approximately $3,750, while several altcoins struggled amid low trading activity and mounting uncertainty.
Analysts say the slide reflects a cautious market mood, especially after October’s sharp correction. On-chain data shows that about $19 billion in leverage was wiped out from the derivatives market, eliminating much of the momentum behind Bitcoin’s earlier rally. Treasury Secretary Bessent’s comments on restrictive Federal Reserve policies, which he believes have strained housing and other sectors, added to speculation about the possibility of a policy shift toward rate reductions.
Initially, the crypto market reacted positively to Bessent’s suggestion, anticipating fresh liquidity and potential price recoveries. However, the optimism quickly faded as traders began to view rate cuts as a response to economic weakness rather than strength. According to Glassnode’s latest report, Bitcoin’s inability to break the $113,000 cost basis for short-term holders shows weakening bullish sentiment, with analysts now eyeing $88,000 as a potential support level if downward pressure continues.
The global financial landscape has further complicated Bitcoin’s outlook. Despite easing U.S.-China tensions—marked by a new agreement to lower tariffs and resume certain trade activities—investors remain risk-averse. The Nasdaq 100 Index, often viewed as a proxy for risk appetite, has also dipped nearly 3% since mid-October, underscoring the fragile confidence across global markets.
Technically, Bitcoin faces a critical juncture. Analysts warn that if the cryptocurrency falls below the 61.8% Fibonacci retracement level of $106,453, it could test October’s low near $102,000. Momentum indicators such as the Relative Strength Index (RSI) and MACD suggest growing bearish pressure, although a short-term rebound toward the $112,500 level remains possible if Bitcoin finds support. For now, the crypto market continues to walk a fine line between recovery hopes and deepening correction risks.
source: nairametrics