Bitcoin's Rollercoaster Ride: A Closer Look at the Recent Dip

Bitcoin has had a rough week. It's now wiped out all the gains it made this year, dropping below $93, 000. This is the first time it's been this low in nearly seven months. In just one day, it lost 2. 3%, and over the past week, it's down by about 13%. Trading has been intense. The volume of Bitcoin traded has more than doubled in the past day, reaching a massive $114 billion. This surge in trading has led to about $335 million worth of Bitcoin derivatives contracts being liquidated in just one day. In total, the crypto market saw $725 million in liquidations over the last 24 hours. Analysts are taking note of this downturn. They point out that Bitcoin has broken below its 50-week moving average and closed under $100, 000 for the first time since May. This has set a cautious tone across the digital asset markets. There's talk about the end of the four-year cycle for Bitcoin. Since Bitcoin's creation, it has gone through a halving event roughly every four years. After each halving, there's usually a significant price drop about 12 to 18 months later. The most recent halving was in April 2024, and October marked the end of that window. Some analysts believed the four-year cycle had ended. But now, there's a different perspective—it might just be delayed. The $92, 000 mark is seen as a key support level. If Bitcoin breaks below this, it could signal further trouble. However, there's also a chance of a short-term bounce if this level holds. Macroeconomic uncertainties are adding to the fragility of the situation. The U. S. government shutdown, which lasted 43 days, has ended, but it hasn't done much to restore investor confidence. The overall picture remains unclear, and this uncertainty is weighing heavily on the crypto market.