Bitcoin price slides for fifth day as risk sentiment weighs on price: Analyst
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Bitcoin has fallen for the fifth straight session, pulling back from its highs since November as it struggles to hold above the $92,000 mark.
Key Takeaways:
Bitcoin slid for a fifth day on profit-taking and rising political and macro uncertainty.
Returns remain orderly, with low liquidity, falling capacity, and renewed spot ETF and whale interest.
Continued concerns over the Federal Reserve's independence are fueling risk-averse sentiment.
According to Samer Hassan, senior market analyst at XS.com, the decline reflects a broader shift towards risk aversion driven by profitability and political and macro uncertainty.
Hasan shared a note with Cryptonews.com that traders are reacting to the emergency of U.S. political risk alongside rising geopolitical and trade tensions.
Bitcoin selling shows limited tension as spot demand strengthens
Despite the tendency to pull back, Hasn explained that the market damage is limited. Futures volumes have remained relatively low, suggesting that the sell-off has no signs of panic and could instead point to a period of consolidation.
There have also been signs of interest. Data from SoSoValue shows that Bitcoin exchange-traded funds had their strongest net gain week since October, following a $20 billion futures liquidation event at the start of the month.
On-chain metrics echo that trend, with addresses from 1,000 to 10,000 BTC increasing by 28 last week, according to BGeometrics.
Meanwhile, according to CoinGlass data, crypto futures open interest has decreased by $9 billion from January's highs, indicating the potential for volatility and greater reliance on spot purchases.
Even so, Hassan said renewed “risk-off” forces are driving Bitcoin's recovery. A major concern is the political uncertainty surrounding the US Federal Reserve.
Reports of a criminal investigation into Fed Chairman Jerome Powell have complicated the governance process and raised questions about the central bank's independence.
This institutional conflict has immediate consequences for market sentiment, as uncertainty over the Fed's autonomy often triggers a flight from dollar-denominated assets.
The situation has fueled debate over the future role of the dollar as a global safe haven. Analysts warn that the erosion of the Fed's autonomy could undermine confidence in US assets, which could accelerate a diversification into alternatives.
“If investors lose faith in US government debt and federal autonomy, decentralized assets such as Bitcoin and gold, which have already seen a rise in prices, will become logical hedges against institutional decay,” he said.
Arthur Hayes Says Bitcoin's Next Rally in 2026 Will Hinge on Dollar Liquidity
Arthur Hayes Bitcoin A new all-time high could be reached in 2026, he argues, arguing that the underperformance relative to gold and technology stocks in 2025 is driven by strong dollar liquidity rather than weakening fundamentals.
According to Hayes, bitcoin needs a supply of dollars to get the best results, and without that financial fuel, even strong adoption trends aren't enough to drive prices up.
Optimism among long-term bulls also remains strong. Venture capitalist Tim Draper reiterated this week that 2026 will be the new year, reiterating his long-held $250,000 price target for Bitcoin.
Meanwhile, Abra CEO Bill Baradite believes easing monetary policy could benefit bitcoin in 2026, reviving risk appetite after a long period of tight financial conditions.
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