Bitcoin Price Analysis: BTC Dips to $100,000 As Shutdown End Brings Little Relief
Bitcoin (BTC) plunged to a low of $100,803 on Wednesday even as President Trump signed off on a bill to end the record 43-day government shutdown. However, gold and US equities rallied, indicating a shift in investor sentiment towards traditional assets.
The funding bill passed the Senate on Monday and the House of Representatives on Wednesday.
President Trump Signs Bill To End Shutdown
US President Donald Trump has signed off on a funding bill to officially end the record 43-day government shutdown. The funding bill passed the Senate on Monday and the House of Representatives on Wednesday, with Trump signing the bill within hours to restart the government. Republicans and Democrats had locked horns over healthcare funding, halting progress on the bill. Democrats wanted to increase support while Republicans wanted to address the issue after the bill had passed. President Trump indicated he was willing to work with the Democrats to iron out issues, stating that after signing the bill,
“I’m always willing to work with anyone, including the other party. We’ll work on something having to do with health care. We can do a lot better.”
The reopening will see staff return to crypto-related agencies, including the United States Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). ETF issuers have been waiting for the SEC to approve a host of spot crypto ETF applications.
Crypto Market Has Entered Fall Season: Morgan Stanley
Strategists from Morgan Stanley believe the cryptocurrency market has entered the “fall season” in Bitcoin’s four-year cycle. The global investment bank and wealth management firm advised investors to secure their gains before the potential onset of winter. Danny Galindo, investment strategist at Morgan Stanley Wealth Management, stated that historical data indicate a consistent three-up, one-down rhythm in Bitcoin’s price cycle. Galindo also urged investors to secure their profits before the down rhythm sets in.
“We are in the fall season right now. Fall is the time for harvest. So, it’s the time you want to take your gains. But the debate is how long this fall will last and when the next winter will start.”
The analogy suggests that Wall Street executives recognize Bitcoin’s market rhythm with a cyclical investment framework similar to commodities or liquidity-driven macro cycles.
Bitcoin (BTC) Price Analysis
The crypto market cap has dropped over 2% in the past 24 hours as investor sentiment remains cautious. The Bitcoin Fear & Greed Index is still firmly in “Fear” territory at 25.
BTC’s decline could indicate continued profit-taking after it reached an intraday high of $107,482 on Tuesday. It also suggests muted institutional inflows into cryptocurrencies compared to traditional investment assets. However, analysts believe volatility could shift in favor of BTC as spot Bitcoin ETFs show signs of a recovery. An uptick in ETF inflows would suggest a return of risk appetite following the October 10 market crash. Bitcoin ETFs recorded $524 million in cumulative net inflows on Tuesday, but saw $278 million in outflows on Wednesday as sentiment reversed. Fidelity’s FBTC saw the largest outflow of $132.9 million, followed by Ark Invest’s ARKB with $85.2 million. BlackRock’s IBIT saw $36.9 million in outflows, while Grayscale’s GBTC recorded $23 million in net outflows.
BTC started the previous weekend in positive territory, rising 1.15% on Friday and settling at $109,555. Price action remained positive on Saturday and Sunday as BTC rose 0.45% and 0.44% to cross $110,000 and settle at $110,536. Selling pressure returned on Monday as the price fell nearly 4% and settled at $106,557. The bearish sentiment intensified on Tuesday as BTC slipped below $100,000, falling to a low of $98,892. However, it rebounded from this level to reclaim $100,000 and settle at $101,468. Despite the overwhelming selling pressure, BTC recovered on Wednesday, rising over 2% and settling at $103,869.
Source: TradingView
BTC returned to bearish territory on Thursday, dropping to a low of $100,235 before settling at $101,290. The price slipped below $100,000 again on Friday, falling to a low of $99,170 before recovering and settling at $103,284, ultimately rising nearly 2%. Price action was mixed over the weekend as BTC fell 0.97% on Saturday before rising 2.36% on Sunday and settling at $104,964. Buyers retained control on Monday as BTC rose 1.23% and settled at $105,979. Buyers lost momentum on Tuesday as BTC fell nearly 3% and settled at $103,009. Sellers retained control on Wednesday as the flagship cryptocurrency fell 1.33% to $101,639. BTC is up almost 1% during the ongoing session, trading around $102,416.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Investment Disclaimer
