CoinDesk reveals what can drive Bitcoin to another fall

According to CoinDesk analysts, the chief cryptocurrency can drop below its $90,000–110,000 price range. They cited the decrease in fiat liquidity as one factor that could drive the negative dynamic.

“We’re looking at a scenario where key liquidity sources are drying up or being more tightly controlled. This could lead to a slowdown in economic activity, higher borrowing costs, and potentially a more challenging environment for risk assets, including crypto,” analyst Anndy Lian posted on X.

Moreover, CoinDesk named the new U.S. administration’s approach to a BTC reserve “cautious.” This is a disappointing signal for investors, who expected a faster implementation of the initiative.

“Wait, Trump said he would do a $BTC Reserve, not promise to “evaluate it.” Evaluate/Study is what Washington does when they don’t want to do something,” Bianco Research President Jim Bianco.

Another risk factor for Bitcoin is the weakening of the upward trend, which was revealed on technical charts. The BTC price graph displays a bearish divergence of the 14-week relative strength index (RSI). A similar pattern appeared following the all-time high of 2021. Analysts explain that the signal will be invalidated if the index crosses the falling trendline.