Bitcoin ended the week under heavy pressure, slipping below $95,000 on Friday and locking in its sharpest weekly decline since March. The benchmark cryptocurrency failed to stage any late-session recovery, capping a nearly 9% drop over the past five days and marking its lowest levels since May.
The weakness contrasts with U.S. equities, where major indexes held small gains into the close. Across crypto markets, losses were even more pronounced:
– Ethereum sank more than 11% this week, sliding under $3,200.
– Solana fell 15% since Monday.
– XRP proved more resilient, easing just 1% amid the rollout of its first U.S. spot ETF from Canary Capital.
Crypto Stocks Diverge After Heavy Selling
Crypto-linked equities delivered a mixed performance after Thursday’s steep declines:
– MicroStrategy (MSTR) fell another 4%, breaking below $200 for the first time since October 2024.
– Bullish (BLSH), BitMine (BMNR), and miners including CleanSpark (CLSK), MARA Holdings (MARA) and Hive Digital (HIVE) lost between 4% and 7%.
Some names rebounded:
– Miner Hut 8 climbed 6% after earnings from American Bitcoin, its venture with the Trump family.
– Robinhood (HOOD) and Riot Platforms (RIOT) each added around 3%.
Market Confidence Hit by Data Freeze
Bitfinex analysts attributed the selloff to a lack of visibility on U.S. economic conditions after the nation’s longest government shutdown in history — spanning Oct. 1 through Thursday — froze key releases including inflation and employment data.
They described the market environment as an “information vacuum” worsened by political uncertainty. The temporary funding bill passed this week keeps the government open only until Jan. 30, offering little reassurance. “The uncertainty hasn’t been resolved — just postponed,” they wrote.
Noelle Acheson, author of Crypto Is Macro Now, said the downturn reflects a necessary reset following months of consolidation that failed to break decisively above $120,000. “We need this flush before conditions improve,” she noted, adding that bitcoin’s long-term outlook strengthens once this corrective phase completes.
Acheson reiterated that macro liquidity remains the key catalyst. Though rate cuts may not arrive until late Q1 2026, balance-sheet easing or liquidity injections could revive risk appetite sooner.
Analysts Warn of Further Downside Toward $84K
Market technicians caution that bitcoin may not be done falling. John Glover, CIO at crypto lender Ledn, said BTC’s drop below the 23.6% Fibonacci retracement just under $100,000 exposes the next major support near $84,000.
With macro uncertainty unresolved and liquidity still tight, analysts say additional downside risks remain in play.
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