Bitcoin is losing momentum as traders pull back amid rising economic instability, a postponed U.S. jobs report, and growing pressure in the housing market. Professional traders are spending heavily to hedge against potential downside moves, highlighting fears of further declines. Meanwhile, in China, stablecoins are being sold at a discount—an unusual signal that local traders are rapidly exiting the crypto market.
Bitcoin recently dropped $2,650 after failing to break above $92,250. This downturn arrived alongside falling U.S. stock prices, driven by concerns over the labor market and increasingly stretched valuations in the AI sector. With the next Federal Reserve monetary policy decision approaching, analysts say Bitcoin’s ability to rebound toward $100,000 will depend heavily on a shift in overall risk sentiment.
<h2>Bitcoin Futures Premium Signals Weak Bullish Demand</h2>
For the past two weeks, the Bitcoin futures premium has stayed below the neutral benchmark, reflecting a lack of buying strength among institutional and professional traders. This trend underscores the broader hesitation across markets as investors struggle with limited economic visibility. A recent government funding shutdown delayed key employment and inflation reports, leaving traders without the essential data needed to gauge economic health.
At the same time, the U.S. housing market is under renewed strain. A rising number of canceled purchase agreements points to weakening consumer confidence and growing financial pressure, adding another layer of uncertainty to an already fragile environment.
<h2>Global Market Stress Reinforces a Bearish Bitcoin Outlook</h2>
Across international markets, signs of stress continue to build. Discounted stablecoins in China, elevated hedging costs, and fading demand in futures markets all point toward sustained bearish momentum. Until clearer economic signals emerge and risk appetite returns, Bitcoin is likely to remain under significant pressure.
Overall, weak demand, cautious traders, and unsettled macroeconomic conditions are collectively shaping a challenging path forward for Bitcoin.
