Crypto Journalist
Amin Ayan
Crypto Journalist
Share
Bitcoin has fallen for a fifth straight session, pulling back from its highest levels since November as it struggles to hold above the $92,000 mark.
Key Takeaways:
- Bitcoin has slid for a fifth straight day on profit-taking and rising political and macro uncertainty.
- The pullback remains orderly, with low liquidations, falling leverage, and renewed spot ETF and whale demand.
- Ongoing concerns over Federal Reserve independence are reinforcing risk-off sentiment.
According to Samer Hasn, senior market analyst at XS.com, the decline reflects a mix of profit-taking and a broader shift toward risk aversion driven by political and macro uncertainty.
In a note shared with Cryptonews.com, Hasn said traders are responding to a sudden spike in US political risk alongside rising geopolitical and trade tensions.
Bitcoin Sell-Off Shows Limited Stress as Spot Demand Strengthens
Despite the pullback, Hasn noted that market damage remains limited. Futures liquidations have stayed relatively low, suggesting the sell-off lacks the hallmarks of panic and may point instead to a period of consolidation.
Signs of underlying demand have also emerged. Data from SoSoValue shows US spot Bitcoin exchange-traded funds posted their strongest week of net inflows since October, following a $20 billion futures liquidation event earlier in the month.
On-chain metrics echo that trend, with addresses holding between 1,000 and 10,000 BTC increasing by 28 over the past week, according to BGeometrics.
Meanwhile, CoinGlass data shows crypto futures open interest has dropped by about $9 billion from January highs, indicating reduced leverage and a greater reliance on spot buying.
Even so, Hasn said renewed “risk-off” forces are capping Bitcoin’s rebound. A key concern is political turmoil surrounding the US Federal Reserve.
Reports of a criminal investigation involving Fed Chair Jerome Powell have complicated leadership succession and raised questions about the central bank’s independence.
“This institutional friction has immediate consequences for market sentiment, as uncertainty regarding the Fed’s autonomy typically triggers a flight from dollar-denominated assets,” he said.
The situation has reignited debate over the future of the dollar’s role as a global safe haven. Analysts warn that perceived erosion of Fed autonomy could weaken confidence in US assets, potentially accelerating diversification toward alternatives.
“If investors lose faith in US government debt and the Fed’s autonomy, decentralized assets like Bitcoin and ‘hard’ assets like gold, which has already seen skyrocketing prices, become the logical hedge against institutional decay,” he said.
Arthur Hayes Says Bitcoin’s Next Rally Hinges on Dollar Liquidity in 2026
Arthur Hayes says Bitcoin could reach new all-time highs in 2026, arguing that its underperformance relative to gold and tech stocks in 2025 was driven by tight dollar liquidity rather than weakening fundamentals.
According to Hayes, Bitcoin needs an expanding supply of dollars to outperform, and without that monetary fuel, even strong adoption trends are not enough to push prices higher.
Optimism among long-term bulls also remains strong. Venture capitalist Tim Draper reiterated this week that 2026 would be a breakout year, repeating his long-standing $250,000 Bitcoin price target.
Meanwhile, Abra CEO Bill Barhydt believes Bitcoin could benefit in 2026 as easing monetary policy injects fresh liquidity into global markets, reviving risk appetite after a prolonged period of tight financial conditions.
