Bitcoin extended its downturn on Friday, sinking below $95,000 and wrapping up its weakest week since March. The cryptocurrency remained pinned near the lows throughout the U.S. session, ultimately recording a nearly 9% weekly loss — its sharpest decline in eight months and a retreat to prices last seen in May.
Major U.S. stock indexes managed to inch higher, but crypto markets continued to lag.
– Ethereum slid more than 11% on the week, trading under $3,200.
– Solana plunged 15% since Monday.
– XRP proved more resilient, falling just 1% as investors reacted to the launch of Canary Capital’s first U.S.-listed spot XRP ETF.
Crypto Equities Split After Prior Day’s Selloff
Performance across crypto-related stocks was mixed:
– MicroStrategy (MSTR) dropped another 4%, slipping below $200 for the first time since October 2024.
– Bullish (BLSH), BitMine (BMNR), CleanSpark (CLSK), MARA Holdings (MARA) and Hive Digital (HIVE) posted losses of 4% to 7%.
Some companies saw relief buying:
– Hut 8 jumped 6% following earnings from American Bitcoin, its joint venture with the Trump family.
– Robinhood (HOOD) and Riot Platforms (RIOT) advanced roughly 3%.
Data Gaps Fuel Market Anxiety
Bitfinex analysts said the selloff is rooted in an “information vacuum” caused by the U.S. government shutdown, which froze essential economic reports such as inflation and jobs data from Oct. 1 until Thursday. With investors and the Federal Reserve deprived of guidance, markets have been left without clear macro direction.
Political uncertainty is also weighing on sentiment. The funding deal that reopened the government lasts only until Jan. 30, offering no long-term clarity. “This doesn’t eliminate uncertainty — it simply postpones it,” Bitfinex wrote.
Noelle Acheson, author of Crypto Is Macro Now, said the pullback reflects a long-overdue reset after months of sideways trading that repeatedly failed to break above $120,000. “This flush is necessary before the market can stabilize,” she said, adding that the long-term thesis for BTC remains intact once the correction runs its course.
Acheson said bitcoin’s main catalyst remains macro liquidity. While the next rate cut may not come until late Q1 2026, any moves toward balance-sheet easing or liquidity injections could revive risk appetite.
Next Key Support Seen at $84K
Technical indicators suggest bitcoin may face additional downside, according to Ledn CIO John Glover. The breakdown below the 23.6% Fibonacci retracement level — just under $100,000 — clears the way toward the next major support near $84,000, he said.
Until investors regain macro visibility and liquidity conditions improve, analysts warn that crypto markets may remain vulnerable to deeper declines.
