Bitcoin No bounce was seen on Friday, with US prices ending the day at a session low below $95,000 after a difficult week, taking prices to their lowest level since May.
The biggest cryptocurrencies are again underperforming US stocks, with major US indices gaining marginally just minutes before the end of trading. BTC was on track to post a 9% loss this week, its worst performance in eight months.
Ethereum Trading below $3,200, things have been rough, down more than 11% since Monday, while Solana’s SOL There was a loss of 15% in the same period. Underperformed with a decline of just 1%, perhaps boosted by this week’s launch of its first spot ETF in the US, issued by Canary Capital.
Crypto-related equities performed mixed after Thursday’s steep decline. MicroStrategy (MSTR), the largest public holder of Bitcoin, fell 4% to below $200 for the first time since October 2024. Exchange bullish (BLSH), Ethereum treasury Bitmine (BMNR), miners Cleanspark (CLSK), MARA Holdings (MARA) and Hive Digital (HIVE) fell 4%-7%.
On the positive side, miner Hut 8 jumped 6% following earnings results from American Bitcoin, a joint venture with the Trump family, while digital brokerage Robinhood (HOOD) and BTC miner Riot Platforms (RIOT) rose about 3%.
‘Information void’ tarnishes investor confidence
Bitfinex analysts said the current market downturn is primarily driven by the lack of clarity on key US economic conditions and the subsequent monetary policy direction. That data blackout was caused by the longest US government shutdown, lasting from Oct. 1 through Thursday, which suspended the release of government inflation and jobs data.
“The market decline is the result of an information vacuum and political uncertainty,” he wrote in a Friday note shared with CoinDesk. “Key economic data is still missing to guide the market and the Federal Reserve, leaving investors unprepared.
However, the shutdown-ending spending bill that lawmakers passed only provides funding to keep the government open through Jan. 30, hurting investor sentiment. “The temporary funding bill does not resolve the uncertainty – it only pushes the issue further down the road.” Bitfinex analysts added.
Noel Acheson, author of Crypto Is Macro Now, said the recent decline was a needed correction after months of range-bound consolidation that failed to sustain a breakout above $120,000. He wrote, “We must pass through this flush before we can breathe more easily.” “Once that happens, the long-term case for BTC becomes stronger – but we are not there yet.”
The main driver for BTC remains macro liquidity, Acheson said. While another Fed rate cut may not happen until the end of the first quarter of 2026, expectations of balance sheet adjustments or other easing measures and “liquidity injections” could help rebuild optimism around risk assets, including BTC, he said.
Leyden CIO Says BTC Is Heading Toward $84K
Meanwhile, technical indicators suggest Bitcoin may still have plenty of room for downside, said John Glover, chief investment officer at crypto lending firm Leyden.
He said that a break below the 23.6% Fibonacci retracement level below $100,000 opens the way to the next major support level, which is around $84,000.
Glover believes the current pullback is part of Bitcoin’s bear market, predicting volatile action for the coming months. “We likely see prices move back above $100,000 before any sustained break below $90,000,” he said, noting that a full recovery could take until the summer of 2026.