Bitcoin Price Analysis: BTC Struggling at $91,000 As Analysts Warn Volatility Could Persist

Bitcoin (BTC) slumped below $90,000 for the first time in seven months on Tuesday, falling to a low of $89,183 before recovering to settle at $93,914. The flagship cryptocurrency is back in the red during the ongoing session, down nearly 2% at $91,368. 

The decline pushed the average spot Bitcoin ETF investor into collective losses for the first time since their launch.

No US Bitcoin Reserve Until Other Countries Make The First Move: Mike Alfred 

Crypto entrepreneur Mike Alfred believes the US government will not begin accumulating for its strategic reserve until other nations make the first move. Alfred stated that the US government will start accumulating Bitcoin into its reserves when there is enough external pressure. 

“Once the US government recognizes that others are taking action before them, that’ll probably catalyze additional action in the future.”

Alfred’s comments come as industry executives push the US government to step up Bitcoin accumulation to avoid its reserve size falling behind other nations. Alfred also expressed confidence that Bitcoin will be worth $1 million per coin by 2033. Alfred’s prediction is conservative compared to ARK Invest CEO Cathie Wood and Coinbase CEO Brian Armstrong, who predict the flagship cryptocurrency will reach seven figures by 2030. 

“I think by the time that happens, almost every government will have some direct or indirect exposure to the asset, and it will be viewed as a common strategic reserve type of asset.”

Michael Saylor Dismisses Concerns About Wall Street Hurting Bitcoin 

Strategy Executive Chairman Michael Saylor has dismissed concerns that Wall Street’s entry into the Bitcoin ecosystem impacted its price and volatility. Saylor added that he believes Bitcoin has become less volatile, stating, 

“I think we are getting a lot less volatility.”

Saylor stated that when he began buying Bitcoin in 2020, the asset carried an annualized volatility of 80%, which is down to around 50% currently. Strategy holds 649,870 Bitcoin, worth $59.59 billion at current prices. However, the company’s Net Asset Value (NAV) has fallen to 1.11X, down from 1.52X when Bitcoin (BTC) reached its all-time high. Saylor added that he is not too concerned about a major downturn, stating, 

“The company is engineered to take an 80 to 90% drawdown and keep on ticking. So I think we’re pretty indestructible. Our leverage is in the know, the level of the 10 to 15% going toward zero right now, which is extremely robust.”

Bitcoin (BTC) Price Analysis 

Bitcoin’s (BTC) pullback has pushed the average spot Bitcoin ETF investor into the red for the first time since the investment vehicles launched. The flow-weighted cost basis across the ETFs is at $89,600, a level that BTC fell below on Tuesday, pushing investors into the red. However, early buyers, particularly those who entered the market when BTC was between $40,000 and $70,000, remain in profit. Vincent Liu, Chief Investment Officer at Kronos Research, stated, 

“Even with the average ETF cost basis above spot, most ETF holders are long-term allocators, so being underwater doesn’t trigger quick exits. In this risk-off environment, liquidity and macro remain the key drivers. Tight conditions can turn losses into downside pressure, while clear easing signals lift anchors.”

BTC continues to face pressure around $92,000, with the $90,000 level being tested repeatedly. Analysts believe BTC and the broader crypto market could remain under pressure ahead of the upcoming US Federal Reserve interest rate decision on December 10. Experts are divided about the direction of monetary policy, with concerns around inflation and a slowing economy persisting. Experts are also divided between a 0,25% rate cut or leaving them unchanged at 4%. More fiscally conservative Federal Reserve members argue that President Trump’s changing stance on tariffs has added inflationary pressure, reducing room to cut rates and support growth. The US job market is also showing signs of cooling. Federal Reserve members have consistently flagged concerns about inflation.

BTC ended the previous weekend in positive territory, rising over 2% and settling at $104,694. The price continued pushing higher on Monday, rising 1.23% to cross $105,000 and settle at $105,979. BTC reached an intraday high of $107,482 on Tuesday. However, it lost momentum as bear market conditions set in. As a result, it fell nearly 3% and settled at $103,009. Sellers retained control on Wednesday as the price fell 1.33% to $101,639. BTC faced substantial selling pressure and volatility on Thursday. As a result, it slipped below the crucial $100,000 mark, falling to a low of $97,870 before settling at $99,614. Selling pressure intensified on Friday as the price plunged over 5%, falling to a low of $93,951 before settling at $94,503.

Source: TradingView

Despite the overwhelming selling pressure, BTC recovered on Saturday, rising 1.10% to reclaim $95,000 and settling at $95,544. Selling pressure returned on Sunday as BTC fell to a low of $92,943 before settling at $94,183, ultimately dropping 1.42%. Bearish sentiment persisted on Monday as the price fell by over 2% and settled at $92,100. Selling pressure intensified on Tuesday as BTC slipped below $90,000, falling to an intraday low of 89,183. However, it rebounded from this level to reclaim $90,000 and settle at $92,914, ultimately rising nearly 1%. BTC is down almost 2% during the ongoing session, trading around $91,408.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.