Bitcoin Price Dips Under $84K: A Crucial Week Ahead for 2025

Bitcoin has reached new local lows following the opening of Wall Street on Monday, with analysts cautioning about increasing macroeconomic challenges.

Key Takeaways

Bitcoin's price has fallen significantly, dipping below $84,000, with daily losses exceeding 7%.
Multiple macroeconomic factors from Asia are worsening liquidity conditions for Bitcoin.
A trader suggests this week’s trading sessions will be crucial in determining Bitcoin’s performance for 2025.

Bitcoin Price Dips

Wall Street Sentiment Pulls Bitcoin Price Down

Recent data from Cointelegraph Markets Pro and TradingView indicates that Bitcoin (BTC) experienced daily losses surpassing 7%, with its price hovering around $83,814 on Bitstamp.

Bitcoin Price Chart

The market saw aggressive bearish pressure as U.S. traders returned from the Thanksgiving holiday, resulting in a discouraging close for the weekly and monthly candles. QCP Capital, a trading firm, summarized the situation in its "Asia Color" market update, highlighting various challenges for cryptocurrencies, particularly stemming from Asia.

Among the issues are rising interest rates in Japan, low market liquidity, and the potential risk of Strategy selling off its Bitcoin corporate holdings. Despite this, the end of the U.S. Federal Reserve’s quantitative tightening (QT) cycle on Monday provides an opportunity for riskier assets to attract more investment.

“The critical question now is whether Bitcoin can maintain its previous low levels amidst growing bearish sentiment,” QCP stated. “This will largely depend on liquidity conditions and the influx related to Strategy. Bitcoin's quick responses to liquidity changes are well-known, making this morning's price drop particularly noteworthy.”

BTC/USD 12-month Chart

Bitcoin: An Opportunity Below $90,000

The atmosphere among traders is understandably bleak.

Related: The Inevitable $50K BTC Price Drop: 5 Key Points to Consider This Week

Bearish sentiments proliferated as the Coinbase Premium turned negative after a short-lived positive phase just three days prior. According to one trader, the market reacted negatively, stating, “Bitcoin dropped 5% today, and we're seeing increased open interest while the price continues to decline. Short positions are on the rise. This suggests bearish sentiments overall.”

“Let’s keep it simple. We need to maintain above 85.2K,” trader Killa posted on X after the Wall Street session began.

BTC/USD One-Week Chart

In contrast, crypto trader and analyst Michaël van de Poppe offered a more optimistic perspective, suggesting that the market might be finding a reliable support level. “Despite the volatility in the markets, the underlying sentiment remains unchanged,” he shared in a post on X. Van de Poppe characterized Bitcoin trading below $90,000 as a “massive opportunity for those looking to acquire positions at a lower cost.”