Global markets suffered a midweek shock as Bitcoin and US stocks fell despite positive news such as the end of QT, two Fed rate cuts and a US-China trade truce. The newly approved altcoin staking ETF also failed to lift sentiment.
On-chain data showed US institutional demand weakening, with Coinbase Premium Gap turning negative, indicating large investors selling or refusing to add to positions. Analysts said retail investors misjudged the impact of positive macro news.
Jerome Powell’s cautious tone also weighed on the market after he warned that a December rate cut was not guaranteed, even though QT will end on December 1. This triggered a repricing of risk in Bitcoin and equities.
CryptoQuant views the current correction as a temporary cooling phase after a speculative surge. The firm expects risk appetite to recover by 2026 as liquidity improves and geopolitical stability returns.
TeraHash, meanwhile, sees the $98,000 level as key support for Bitcoin, with a risk of a drop to $70,000 if it is breached. However, they maintain a long-term bullish outlook and expect new highs to be reached by late 2025 or early 2026.
