Bitcoin Plunges Below $96K Amid Fed Uncertainty and Trade Tensions

Bitcoin's price has dropped below $96,000, raising questions about its near-term trajectory. The cryptocurrency is currently trading around $95,700 after rebounding from a low of $93,380. Market participants are closely watching the Federal Reserve's policy stance and trade tensions, which have capped Bitcoin's upside momentum.

Bitcoin investment products saw $430 million in outflows last week, marking the largest weekly decline of 2025. This shift in investor sentiment comes after a 19-week inflow streak totaling $29 billion since the 2024 U.S. election. The outflows follow a hotter-than-expected inflation report, which has raised concerns about the Fed's interest rate policy.

Technical indicators suggest further downside risk for Bitcoin. Material Indicators highlight multiple "death crosses" on daily charts, historically signaling extended selloffs. Short-term moving averages crossing below long-term ones indicate a shift in momentum. Liquidity remains strong near $95,000, but losing this level could push BTC toward $92,000 support.

Bitcoin's ability to hold key support levels will determine its near-term direction. A failure to reclaim $95,500 may expose BTC to further declines, potentially testing $91,500. Despite the drop, retail traders remain steady, while institutional investors adjust their exposure. Liquidity is shifting, creating a "shakeout" scenario as weaker hands exit and larger players reposition.

Bitcoin is struggling to hold above $93,400, down 2% in 24 hours. The decisive break below $95,000 confirms a bearish symmetrical triangle breakdown, reinforcing the downside risk. Immediate support lies at $93,100, followed by $91,600—a key level for bulls to defend. A further decline could push BTC toward $89,900, a psychological support zone likely to attract buyers.

Unless Bitcoin reclaims key resistance levels, the bearish trend remains intact with potential for further declines. Market participants are closely watching the Fed's stance on interest rates, with markets pricing in only a 2.5% probability of a rate cut in March. The combination of Federal Reserve policy uncertainty and trade tensions