BTC Drops Under $93K in Widespread Crypto Decline, but Traders Expect a Quick Bounce.

Bitcoin Dips Below $93K as Selloff Intensifies; Short-Term Rally Could Be on the Horizon

Bitcoin (BTC) has succumbed to mounting macroeconomic pressures, slipping below $93,000 on Wednesday amid a broad-based crypto selloff. The leading cryptocurrency reached an intraday low of $92,600, marking a nearly 10% decline from its Monday high above $102,000. It has since recovered slightly to trade near $94,300, down 2.5% over the past 24 hours.

Altcoins like Cardano (ADA), Render (RNDR), and Aptos (APT) were among the hardest hit, contributing to a 3% decline in the CoinDesk 20 Index during the same period.

Macro Uncertainty Weighs on Crypto Markets

The crypto pullback follows a sharp rise in global government bond yields, which has spooked investors across asset classes. The U.S. 10-year Treasury yield climbed to 4.70% this week, nearing multi-year highs, while the U.K.’s 30-year Gilt yield surged to 5.35%, its highest level since 1998. Similar trends have been observed in Japan, Germany, and Italy.

The macro backdrop grew more challenging after strong U.S. economic data on Tuesday diminished hopes for aggressive Federal Reserve rate cuts this year. Minutes from the Fed’s latest meeting revealed heightened concerns about inflation and potential risks tied to President-elect Donald Trump’s proposed tariff policies.

Crypto-Related Stocks Face Steep Losses

The crypto slump has extended to related equities. Mining companies, including TeraWulf (WULF), Bit Digital (BTBT), and Hut 8 (HUT), saw their stocks drop by 5%-8%. Semler Scientific, a medical devices firm holding BTC as part of its treasury strategy, plunged 10% on Wednesday, while MicroStrategy (MSTR) fell 2.2%.

The selloff also triggered nearly $1 billion in liquidations of leveraged crypto positions, with long trades bearing the brunt, according to data from CoinGlass.

Analysts Predict a Temporary Bounce

Despite the recent downturn, market analysts suggest bitcoin could see a short-term rebound. BTC has returned to the lower end of its trading range established in late November, setting the stage for potential relief.

“Bitcoin might need to consolidate for a while before pushing higher,” noted Bob Loukas, founder of Station3 NYC. “We could see a short-term rally, but the $100K level may take some time to become a comfortable floor.”

Looking ahead, Friday’s U.S. non-farm payrolls report and the Federal Reserve’s January meeting are expected to influence bitcoin’s next move. Optimism surrounding Trump’s January 20 inauguration could also provide a bullish catalyst, according to analysts at QCP Capital.

“This pullback feels like a reset rather than a reversal,” QCP said in a Telegram update. “As inauguration day approaches, we anticipate renewed interest in bitcoin and a potential return to the $100K range.”