BTC continued to fall by 2%, almost completely giving back the gains of the year! Is the bull market over or just a short pullback? Experts say so

Under the dual pressure of global bond market turmoil and uncertain economic prospects, the encryption currency market has recently experienced a significant pullback. After losing the $100,000 mark, BTC continued to decline today (9th), briefly breaking below $93,000. The gains since the beginning of the year have almost vanished, causing concerns for many investors. However, analysts believe that this pullback is only a "temporary breather" and expect BTC to resume its upward trend by the end of the month.

CoinGecko market data shows that BTC probed as low as $92,938.86 in the early hours of today, down over 9% from Tuesday's high of $102,290. Although BTC has rebounded slightly to $94,662 at the time of writing, it still dropped 2.3% in the past 24 hours.

In fact, several analysts have previously warned that due to the overall economic situation is still uncertain, the encryption currency market may face a difficult start in January this year. The main factors include: the hawkish stance of the Federal Reserve (Fed), the rise in long-term US bond yields, sustained inflation pressure, and the possibility of a government shutdown in the United States.

Furthermore, a series of strong economic data released by the United States on Tuesday further triggered a market sell-off, causing investors to lower their expectations for interest rate cuts this year. Although Fed board member Christopher J. Waller subsequently expressed support for further interest rate cuts to mitigate the inflationary impact of the Trump administration's tariff policies, market views on interest rate prospects have not changed significantly.

In addition, today's released Fed meeting minutes also show that most officials believe that the upward risk of inflation has increased, and they also express concern about the impact of Trump's new policies.

Short-term rebound of BTC expected?

Today's sell-off has brought the price of BTC back to the lower end of the consolidation range since the end of November last year. However, well-known cross-asset trader Bob Loukas believes that BTC is expected to rebound from the low in the short term, but may continue to fluctuate within the range, and even may further pull back until the pressure is fully digested, before there is a chance to reach new highs. He wrote:

This does not mean that the market will be completely bearish, but we may need more time to adapt to prices above $100,000 before we can truly break through this area.

Regarding the future trend of BTC, QCP Capital believes that the US non-farm payroll data to be released on Friday and the interest rate decision meeting to be held by the Fed at the end of the month will be key catalysts affecting BTC's trend. Analysts further state:

The current pullback is just a temporary breather, and the inauguration of Trump on January 20 will bring optimism to the market, which is expected to trigger a new wave of upward trend for BTC.

BTC continues to drop by 2%, almost wiping out the gains from the beginning of the year! Has the bull market ended or is it a short-term pullback? Experts say this. This article was originally published in "Block Times".