Bitcoin dropped below the critical $90,000 support before recovering to $94,859, signaling bearish momentum. Historically, January post-halving years have been challenging for Bitcoin, with 30% and 25% drops in January 2017 and 2021, respectively, followed by new all-time highs later in those years.
The S&P 500 (SPX) is also under pressure as a stronger US Dollar Index (DXY) and reduced expectations for rate cuts weigh on risk assets. The CME FedWatch Tool shows only a 2.7% chance of a 0.25% rate cut this month.
Despite short-term volatility, institutional confidence remains strong. MicroStrategy added 2,530 Bitcoin at an average price of $95,972, raising its holdings to 450,000 BTC. Historical patterns and continued accumulation suggest Bitcoin’s long-term prospects remain intact.
