Bitcoin Dips Below $100,000 Amid Market Adaptation and Geopolitical Shifts

Bitcoin's price has recently dipped below the $100,000 mark, sparking discussions among traders about the cryptocurrency's next potential move. Despite a modest 13% gain year-to-date in 2024, Bitcoin has not reacted as strongly to catalysts such as ETF inflows, stablecoin activity, and corporate accumulation as it did during last year’s rally. This shift in behavior suggests that deeper changes are occurring in the market.

According to 10x Research, traders are adapting to lower market volatility by investing in fewer top coins, which may be slowing down Bitcoin’s short-term gains. The report also revisits the Federal Reserve’s surprise 50 basis points rate cut in September 2024, which was met with skepticism as bond yields surged. Inflation has remained steady at 2.4% for three straight months, and unemployment has held steady at 4.2% for nearly a year, defying recession fears. With macro fundamentals stabilizing and the Fed’s tone becoming more dovish, many expected a stronger Bitcoin rally. However, the market seems to be waiting for clearer signals.

All eyes are now on the July 15 CPI report as the next big market catalyst. 10x Research hints that Bitcoin’s next move may depend less on money flowing in and more on how market participants continue to adapt to these changing geopolitical and financial scenarios. Analyst Astronomer suggests that the decline may not be over yet, with a possible final dip before the price bounces back. The $97,000 zone is being watched closely as a key level for buyers to re-enter the market.

If support holds, Bitcoin could aim for a rebound toward $110,000. Weekend lows tend to be retested, and with sentiment shifting following a ceasefire deal between Israel and Iran, Bitcoin has already climbed back to $106,000. This geopolitical development, along with improving market mood, has brought renewed buying interest. The overall outlook remains cautiously bullish, with investors eyeing $97,000 as a solid entry point if another dip happens.