Bitcoin's Price Declines for Fifth Consecutive Day Amid Cautious Market Sentiment

Bitcoin has experienced a drop for the fifth consecutive day, retreating from its recent peaks last seen in November, and is currently finding it challenging to maintain the $92,000 threshold.

Key Takeaways:

Bitcoin's value has decreased for five straight days due to profit-taking and increasing political and macroeconomic uncertainties.
The market pullback has been orderly, with low liquidation levels, declining leverage, and renewed interest from spot ETFs and large investors.
Concerns about the U.S. Federal Reserve's independence are contributing to a risk-off market sentiment.

Samer Hasn, a senior market analyst at XS.com, explains that the recent price decline represents a combination of profit-taking and a larger trend toward risk aversion, spurred by growing political and macroeconomic uncertainty.

In his commentary to Cryptonews.com, Hasn highlighted that traders are reacting to a rise in U.S. political risk amidst escalating geopolitical and trade tensions.

Bitcoin Slides for Fifth Day as Risk-Off Sentiment Weighs on Prices: Analyst

Bitcoin Sell-Off Indicates Limited Market Stress as Spot Demand Grows

Despite the ongoing pullback, Hasn emphasized that the market has not suffered extensive damage. Liquidations in the futures market remain relatively low, suggesting that the current selling trend is not driven by panic but may signify a phase of market consolidation.

Emerging signs of demand are also evident. Data from SoSoValue reveals that U.S. spot Bitcoin exchange-traded funds (ETFs) have experienced their largest weekly net inflows since October, following a $20 billion liquidation event earlier in the month.

On-chain metrics support this observation, with addresses holding between 1,000 and 10,000 BTC increasing by 28 in the past week, according to BGeometrics.

Additionally, data from CoinGlass shows a decrease of approximately $9 billion in crypto futures open interest since January highs, indicating less leverage and a growing reliance on spot buying.

However, Hasn noted that renewed risk-off sentiments are limiting Bitcoin's recovery, particularly due to political uncertainties surrounding the U.S. Federal Reserve.

Recent reports of a criminal investigation involving Fed Chair Jerome Powell have complicated succession plans and raised concerns about the independence of the central bank.

“This institutional friction directly impacts market sentiment, as uncertainty about the Fed’s autonomy typically leads to a flight from dollar-denominated assets,” Hasn explained.

The ongoing situation has revived discussions about the future of the dollar as a global safe haven. Analysts caution that a perceived decline in Fed autonomy could diminish confidence in U.S. assets, potentially accelerating investments in alternatives.

“If investors begin to doubt U.S. government debt and the Fed’s independence, decentralized assets like Bitcoin and tangible assets such as gold, which has already seen a significant price increase, become the logical hedge against institutional deterioration,” he asserted.

Arthur Hayes Predicts Bitcoin's Upcoming Rally Depends on Dollar Liquidity in 2026

Arthur Hayes believes that Bitcoin could achieve new all-time highs by 2026, arguing that its recent underperformance compared to gold and tech stocks in 2025 was primarily due to tight dollar liquidity, not deteriorating fundamentals.

Hayes notes that for Bitcoin to rise above previous records, there needs to be an increasing supply of dollars, as even robust adoption trends cannot lead to higher prices without adequate monetary support.

Optimism among long-term Bitcoin advocates remains strong. Venture capitalist Tim Draper reaffirmed this week that he anticipates 2026 will be a breakout year, reiterating his historical price target of $250,000 for Bitcoin.

Meanwhile, Abra CEO Bill Barhydt suggests that Bitcoin might benefit from easing monetary policies in 2026, which could provide new liquidity to global markets and rekindle risk appetite following a lengthy period of tight financial conditions.