Thomas Daniels
Bitcoin Could Fall Below $95K During a Market Correction
For the first time since January 27, Bitcoin (BTC) has fallen below the crucial $100,000 threshold, sparking fears of a wider slump. In January, the flagship cryptocurrency saw a historic monthly closing above $102,000, but analysts caution that a brief decline to $95,000 is still feasible.
The $95,000 range is a crucial support level, according to Bitget Research principal analyst Ryan Lee. “The key drivers to keep an eye on in the upcoming weeks will be the interaction of labor market trends, Federal Reserve policy expectations, and market sentiment,” Lee told Cointelegraph.
Future U.S. job market data, which is scheduled for release on February 7, will determine the direction of Bitcoin in the near future. A deteriorating jobs data would increase anticipation of rate reduction by the Fed, which would be better for Bitcoin’s ongoing increase.
The Record Monthly Close of Bitcoin and the Growth of ETFs
Bitcoin’s long-term prognosis is still optimistic despite its recent volatility. The cryptocurrency saw a 6% increase from its previous record of $96,441 in November 2024 to reach its highest-ever monthly close of $102,412 in January.
Institutional interest is also being fueled by the expanding impact of spot Bitcoin exchange-traded funds (ETFs). Almost a year after their January 11, 2024, U.S. launch, spot Bitcoin ETFs now manage more over $125 billion in assets.
Market Prediction: Will Bitcoin Reach $180,000?
Although market mood may be shook by temporary declines, economists remain optimistic about Bitcoin’s 2025 market cycle. A possible change in Federal Reserve policy and growing institutional usage are driving forecasts that range from $160,000 to over $180,000.
Because Bitcoin is at a critical point, investors are keeping a close eye on whether the recent decline is a bear trap or a more significant correction before the next step higher.
