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Bitcoin saw no rebound on Friday, holding to session lows below $95,000 late in the day in the US after a bruising week that dragged prices to their lowest since May.
The largest cryptocurrency is once again under pressure for US stocks, with the main US indices maintaining minor gains just minutes before the end of trading. BTC was on track to record a 9% loss for the week, its worst performance in eight months.
ethereum trading below $3,200, went worse, tumbling more than 11% from Monday, while Solana’s SOL lost 15% in the same period. held better, dip of only 1%, perhaps stimulated by that of this week debut of its first spot ETF in the United States, issued by Canary Capital.
Crypto-related equities were mixed after Thursday’s sharp losses. MicroStrategy (MSTR), the largest public holder of bitcoin, slid another 4% to below $200 for the first time since October 2024. Bullish exchange (BLSH), Ethereum treasure BitMine (BMNR), miners CleanSpark (CLSK), MARA Holdings (MARA) and Hive Digital (HIVE) slid 4%-7%.
On the positive side, the Hut 8 miner rebounded 6% after earnings results from American Bitcoina joint venture with the Trump family, while digital brokerage Robinhood (HOOD) and BTC miner Riot Platforms (RIOT) advanced around 3%.
“Information vacuum” clouds investor confidence
The current market decline is largely driven by a lack of clarity on key US economic conditions and the direction of the next monetary policy, Bitfinex analysts said. That data blackout was due to the longest US government shutdown that lasted from Oct. 1 through Thursday, which suspended the release of government inflation and employment data.
“The market pullback is the result of an information vacuum and political uncertainty,” they wrote in a Friday note shared with CoinDesk. “Key economic data is still missing to guide the market and the Federal Reserve, putting investors on standby.
However, the expense bill ending the shutdown that lawmakers only passed providing funding to keep the government open until January 30, weighing on investor sentiment. “The temporary funding bill doesn’t solve the uncertainty — it just pushes the problem further down the road.” Bitfinex analysts added.
Noelle Acheson, author of Crypto Is Macro Now, said the recent drawdown was a necessary correction after months of range-bound consolidation that failed to sustain a breakout above $120,000. “We need to pass this stream before we can breathe more easily,” he wrote. “Once that happens, the long-term case for BTC strengthens – but we’re not there yet.”
The main driver for BTC remains macro liquidity, Acheson added. While another Fed rate cut might not arrive until later in the first quarter of 2026, expectations for balance sheet adjustments or other easing measures and “liquidity injections” could help rebuild optimism around risk assets including BTC, he said.
BTC led to $84K, says Ledn CIO
Meanwhile, technical indicators suggest that bitcoin may still have a lot of room to fall, said John Glover, chief investment officer at crypto credit company Ledn.
He noted that a break below the 23.6% Fibonacci retracement level just below $100,000 opened the way to the next key support level, sitting at around $84,000.
Glover believes the current pullback is part of it the bitcoin bear marketwhich predicts volatile action for the next few months. “We will likely see prices move back above $100,000 before any sustained break below $90,000,” he said, noting that the full correction could play out until the summer of 2026.
