Bitcoin Slides Below $95K as Market Faces Uncertainty and Liquidity Concerns

Bitcoin continued its decline on Friday, slipping below $95,000 and ending the week with its steepest drop in eight months. The world’s largest cryptocurrency fell roughly 9% over the past five days, extending a bearish trend that has left investors uneasy. While U.S. stock indices managed modest gains, BTC underperformed once again, struggling to find support after hitting its lowest level since May.

Ethereum also faced significant selling pressure, falling more than 11% this week as it traded under the $3,200 mark. Solana’s SOL dropped 15% during the same period. XRP stood out as a relative outperformer, losing just 1%, potentially supported by the launch of its first U.S. spot ETF from Canary Capital.

Crypto equities delivered mixed results after Thursday’s sharp downturn. MicroStrategy fell an additional 4%, dipping below $200 for the first time since late 2024, while companies like Exchange Bullish, BitMine, CleanSpark, MARA Holdings, and Hive Digital registered declines between 4% and 7%. On the upside, Hut 8 surged 6% following positive earnings tied to its joint venture with the Trump family, and Robinhood and Riot Platforms each gained about 3%.

Analysts point to an “information vacuum” caused by the extended U.S. government shutdown as a core driver of the recent market weakness. With crucial inflation and employment data delayed for weeks, investor confidence has dwindled. Although the shutdown has ended, the temporary funding bill only keeps the government open until January 30, leaving continued uncertainty around fiscal policy and future Federal Reserve decisions.

Market experts, including Noelle Acheson, argue that Bitcoin’s pullback is a healthy correction following months of consolidation below $120,000. However, she highlights macro liquidity as the key catalyst for BTC’s next major move. Expectations for potential Fed balance sheet changes or liquidity injections could help revive bullish sentiment in the coming months.

From a technical standpoint, Ledn CIO John Glover warns that BTC may still have room to fall. A breakdown below the 23.6% Fibonacci retracement near $100,000 now exposes support around $84,000. Glover anticipates heightened volatility ahead, suggesting Bitcoin may briefly reclaim levels above $100,000 before any deeper retracement unfolds through summer 2026.