Bitcoin (BTC) briefly dropped to $94,745, marking a sentiment-driven dip rather than a fundamental shift in market outlook. Despite this, BTC quickly rebounded above $97K, with traders closely watching the $100K resistance.

What’s Driving Bitcoin’s Volatility?

The recent pullback follows BTC’s record-breaking rally in 2024, fueled by Trump’s U.S. election victory and renewed institutional interest. However, macroeconomic factors—such as the Federal Reserve’s stance on interest rates and Trump’s new tariff policies—have introduced uncertainty into the market.

QCP Capital analysts suggest that volatility will remain high in the coming months, with a growing number of traders hedging through put options. Meanwhile, long-term holders appear unshaken, as 14,000 BTC moved on-chain, signaling whale accumulation.

Bullish or Bearish?

Bitcoin’s current price action suggests a psychological battle at $100K—a breakout could lead to new highs, while failure may trigger further downside. With institutional accumulation rising and macro events unfolding, traders must weigh the risks and rewards carefully.

⚠️ This article is for informational purposes only and does not constitute financial advice.