Bitcoin At A ‘Critical Juncture’ As Crypto Braces For a ‘Major’ Price ‘Catalyst’ #CriptoNews

Bitcoin and cryptocurrency prices have found a temporary floor following a steep sell-off—though one analyst has warned traders not to “buy the dip.”

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The bitcoin price plummeted to lows of around $85,000 per bitcoin on Tuesday, down 21% from its all-time high of almost $110,000 and putting it in correction territory. However, bitcoin has bounced back as the market readies for a major legislation update teased by bitcoin-backing U.S. senator Cynthia Lummis.

Now, as traders weigh what Elon Musk’s proposed Doge dividend stimulus checks could mean for bitcoin, analysts have said bitcoin remains at a “critical juncture.”

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Forbes‘It Begins’—Bitcoin And Crypto Brace For $80 Trillion U.S. Price BombshellBy Billy Bambrough

“Bitcoin remains at a critical juncture after nearly 90 days of consolidation,” Bitfinex analysts wrote in a report. ”As market participants await a catalyst, bitcoinʼs next major move will likely be dictated by macroeconomic trends and could be decisive.”

The bitcoin and crypto market’s rally has stalled in recent weeks, struggling alongside a stock market slow down that’s been partly blamed on economic uncertainty.

The bitcoin price sell-off led to record near-$1 billion worth of funds being pulled from the fleet of U.S. spot bitcoin exchange-traded funds (ETFs)—meeting a prediction by Geoff Kendrick, head of crypto research at Standard Chartered Bank, who warned the market could still have some way to fall.

“I still think the big capitulation is yet to come,” Geoff Kendrick, head of crypto research at Standard Chartered Bank, said in emailed comments.

U.S. president Donald Trump, who pledged to create a U.S. bitcoin reserve while on the campaign trail, has spooked investors with his threats of tariffs, sparking fears a global trade war could hit asset prices.

“The U.S. economy is also facing increasing challenges as consumer confidence weakens and inflation expectations rise, posing a potential setback to the Federal Reserveʼs progress in controlling price growth,” the Bitfinex analysts wrote.

Fed chair Jerome Powell has been forced to pause his planned interest rate cutting cycle after kicking it off with a half-point reduction in September as inflation threatens to spiral back out of control.

Meanwhile, the market is braced for the release of artificial intelligence poster boy Nvidia’s fourth-quarter earnings after Wednesday’s market close, with a strong expectations beat likely to hand support to the bitcoin price and crypto markets—though a miss could reignite the bitcoin price meltdown.

“Nvidia’s earnings will be a major AI-driven catalyst, potentially lifting tech and crypto markets,” Matt Mena, crypto research strategist at crypto exchange-traded fund (ETF) issuer 21Shares, said in emailed comments.

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Forbes‘Don’t Buy The Dip’—Stark Bitcoin ETF Warning Adds To ‘Extreme’ Fed Price Crash FearBy Billy Bambrough

“There’s plenty of unease around the short-term future for tech stocks as AI’s big boy Nvidia prepares to face investors,” Danni Hewson, head of financial analysis at AJ Bell, said via email.

“What the chipmaker has to say about the outlook for the next year has the power to move markets, especially with plenty of jitters about Donald Trump’s new curbs to Chinese investment and the little issue of DeepSeek and its quest to bring a new AI model to market.”

Hewson added that “U.S, consumer confidence is shaken [and] people are nervous about what the next few months could bring [after] a pause in rate cuts.”