Bitcoin slipped toward $90,000 on Thursday as crypto markets reversed much of Tuesday’s rebound, with overall risk appetite weakening despite the Federal Reserve’s widely expected rate cut and Treasury’s resumption of buying.
Major tokens extended their weekly losses and more than $514 million in leveraged positions were wiped out over the past day as volatility intensified on derivatives sites.
BTC traded at around $90,250, down 2.4% over 24 hours. Ether fell 3.4% to $3,208, while Solana slipped 5.8% and fell 5.5%. Seven-day returns remained negative for almost all large-cap tokens, with XRP down 8.6%, ADA down 7.2% and BNB down 5.9%, according to CoinGecko data.
The pullback follows Tuesday’s brief spike above $94,500, a move that triggered a slight squeeze but failed to break the resistance that has capped bitcoin for most of the past three weeks. The rejection sent BTC back to the middle of its one-month range, where market depth remains thin and liquidation clusters continue to influence price swings.
“Strictly speaking, we have seen a series of higher local highs and lows since November 21,” Alex Kuptsikevich, senior market analyst at FxPro, told CoinDesk in an email.
“However, for the rebound to definitively be considered the start of capitalization growth, it must exceed $3.32 trillion, or about 6% above current levels. The global crypto market cap stands at nearly $3.16 trillion, up 2.5% from the start of the week but still below Tuesday’s local high of $3.21 trillion.
Leverage was a major factor in Thursday’s decline. Data from CoinGlass shows that $376 million in long positions were forcibly closed in 24 hours – almost triple the $138 million in short liquidations – as BTC fell back below its short-term trendline.
Macroeconomic conditions offered little support. Even though the Fed cut rates again on Wednesday, policymakers expect less reductions over the next two years, revealing a sharp division within the committee.
Elsewhere, QCP Capital told clients earlier this week to expect wider Bitcoin trading bands between $84,000 and $100,000 through the end of the year, citing a mix of reduced liquidity and lingering positioning imbalances.
Bloomberg Intelligence strategist Mike McGlone also warned that a “Santa rally” may not materialize, forecasting that BTC could end the year below $84,000.
For now, traders are watching to see if BTC can maintain its position near the $90,000-$91,000 zone – a support region tested several times over the past month.
A decisive break to the downside would expose the lower end of the current range, while stabilization could pave the way for another attempt at $94,000 resistance as markets recalibrate post-Fed.
