bitcoin fell toward $90,000 on Thursday as crypto markets unwound much of Tuesday’s rally, and broad risk appetite weakened even as the Federal Reserve delivered a widely expected rate cut and resumed Treasury bond purchases.
Major tokens extended weekly losses and over $514 million in leveraged positions were wiped out over the past day as volatility spiked across derivatives venues.
BTC traded around $90,250, down 2.4% in 24 hours. Ether fell 3.4% to $3,208, while Solana fell 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 data from CoinGecko.
The pullback follows Tuesday’s brief rally above $94,500, a move that triggered a small short squeeze but failed to break the resistance that has held bitcoin back 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 groups continue to influence price swings.
“Strictly speaking, we have observed a series of local highs and lows since November 21,” Alex Kuptsikevich, senior market analyst at FxPro, told CoinDesk in an email.
“However, to definitively classify the rally as the beginning of capitalization growth, it is necessary to exceed $3.32 trillion,” approximately 6% above current levels. The global crypto market capitalization stands near $3.16 trillion, up 2.5% from earlier in 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 (nearly triple the $138 million in short liquidations) as BTC fell back below its short-term trend line.
Macroeconomic conditions offered little support. Although the Federal Reserve made another rate cut on Wednesday, officials projected less reductions over the next two years, revealing a stark division within the committee.
Separately, QCP Capital told clients earlier this week to expect wider bitcoin trading bands between $84,000 and $100,000 towards the end of the year, citing a combination of reduced liquidity and persistent positioning imbalances.
Bloomberg Intelligence strategist Mike McGlone similarly warned that a “Santa Claus rally may not materialize,” predicting BTC could end the year below $84,000.
For now, traders are watching to see if BTC can hold near the $90,000 to $91,000 area, a support region tested repeatedly over the past month.
A decisive break lower would expose the lower end of the current range, while stabilization could set the stage for another attempt at $94,000 resistance as markets recalibrate post-Fed.
