Bitcoin Slips Below $90,000 Amid Fed Uncertainty and Weak Liquidity
Bitcoin trades below $90,000, continuing a pullback from a peak near $120,000 amid uncertain macroeconomic signals and uneven liquidity. Elevated interest rates and rising yields have restrained institutional appetite for Bitcoin. A stronger US dollar and 10-year Treasury yields around 4.17% are adding pressure on non-yielding assets like Bitcoin. On-chain data show that exchange reserves remain low, indicating holder conviction but not guaranteeing near-term upside. Long-term holders have been taking profits; overall activity suggests consolidation without a clear breakout signal yet. Linh Tran of XS.com notes that Bitcoin's price action reflects expectations for monetary policy more than macroeconomic data. Inflation at 2.7% keeps the Federal Reserve cautious about easing. The growth of spot Bitcoin ETFs has increased institutional participation but also ties Bitcoin to traditional capital flows and liquidity dynamics. Analysts expect Bitcoin to oscillate within a wide range until clearer signals of monetary easing or a more supportive liquidity environment emerge.
