Bitcoin Slides to Two-Week Low as Market Confidence Weakens
Bitcoin has once again taken a hit, falling to its lowest level in more than two weeks, and it seems like the market is struggling to regain its footing after a rocky October. The world’s largest cryptocurrency, Bitcoin, dropped by as much as 2.5%, landing near the $104,000 mark. It’s not just Bitcoin feeling the heat — Ether, the second-largest token, also fell around 3.4%, dipping below $3,500.
Now, what’s really going on here? A few things are coming together to weigh down crypto sentiment. First, the U.S. dollar has been strengthening recently, and whenever that happens, riskier assets like Bitcoin tend to lose some appeal. Investors become cautious, and their appetite for risk starts to fade. On top of that, the recent chaos in decentralized finance (DeFi) circles has also added some uncertainty, shaking confidence even further.
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Analysts say Bitcoin’s struggle to stay above its “cost-basis” level — roughly around $113,000 for short-term holders — is a red flag. This level often serves as a dividing line between bullish and bearish sentiment. The fact that Bitcoin has failed to hold above it suggests that buyers are losing conviction, and selling pressure is continuing to build. If this weakness persists, prices could even slide closer to $88,000, which many consider a key support zone.
Long-term holders, who usually anchor Bitcoin’s stability, have also started selling more aggressively. Data indicates that they’ve been distributing around 104,000 BTC per month, the heaviest selling seen in months. Essentially, the people who’ve held Bitcoin for a long time — often through thick and thin — are taking profits, signaling a lack of confidence in near-term recovery. This ongoing distribution puts a ceiling on upward momentum and keeps the market under pressure.
However, not everything is doom and gloom. On the volatility side, things have calmed down compared to the sharp swings seen in October. Traders are no longer rushing to hedge against dramatic price drops. In fact, the options market shows a more balanced tone now — traders expect small, controlled moves rather than sudden crashes. This suggests that the market is entering a “stabilization phase,” though it’s still fragile.
The next big catalyst everyone’s watching is the U.S. Federal Reserve meeting. Most investors are betting on a rate cut, and if the Fed takes a dovish stance, it could help keep Bitcoin’s volatility under control. But if the Fed surprises with a tougher, more hawkish tone, we could easily see another round of turbulence.
In simple terms, Bitcoin is in a waiting zone — stable for now, but not out of the woods yet. Until long-term holders start buying again and fresh demand enters the market, the path to recovery remains uncertain.
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