Bitcoin Breaks Below $94K While Stocks Attempt to Recover from Recent Turbulence

Bitcoin Slips Below $94K as Market Turbulence Weighs on Crypto

Bitcoin (BTC) dipped below $94,000 on Monday as broader macroeconomic uncertainty and continued sell-offs across the crypto market pressured prices.

BTC fell to $93,900 by the close of U.S. trading, marking a 1.9% decline in the past 24 hours. Ether (ETH) suffered a sharper drop, losing 5.9%, while the CoinDesk 20 Index slid 5.1%.

The decline comes as U.S. stock markets failed to recover from last week’s sell-off. The Nasdaq closed down 1.2%, while the S&P 500 slipped 0.5%, signaling a cautious outlook among investors.

Among major cryptocurrencies, Solana (SOL) was hit the hardest, plunging nearly 10% in a day and a staggering 41% over the past month. Analysts point to fading interest in memecoins, upcoming token unlocks, and an increase in SOL inflation following the implementation of SIMD-96, which adjusted Solana’s network fee structure. SOL is now trading at $151, erasing its post-election gains.

Crypto hedge fund manager Quinn Thompson, founder of Lekker Capital, warned that Bitcoin’s upside may be limited in the near term.

“$95,000 is still a strong exit point given where I think we could be in 6-12 months,” Thompson wrote on social media, predicting an 80% chance that Bitcoin won’t set new highs in the next three months and a 51% chance it won’t over the next year.

Macroeconomic risks also loom large. Neil Dutta, head of economic research at Renaissance Macro Research, highlighted growing concerns about slowing real incomes, a struggling housing market, and reduced government spending.

“If 2023 was full of upside surprises, 2025 could be the year of downside shocks,” Dutta warned. He expects tighter financial conditions to weigh on equities and job growth, adding to the uncertainty facing risk assets like crypto.

With both traditional markets and crypto struggling to find direction, investors are bracing for more volatility in the days ahead.