Cryptocurrency markets are ending the week in decline. Bitcoin price has fallen to around $99,984 and is struggling to maintain the key psychological level of $100,000. Over the past 30 days, Bitcoin has fallen by nearly 18%, ending a previous strong bullish phase. The main reason for this decline is the recent message from the US Federal Reserve. The U.S. dollar immediately rose after the Federal Reserve signaled that the pace of interest rate cuts may slow. When the dollar rises, investors tend to exit riskier investments, and cryptocurrencies are usually the first to feel the impact.
Ethereum is also under selling pressure and is trading near $3,217. Market indexes such as the CoinDesk 5 index and the CoinDesk 20 index showed a similar trend, with both declining about 3% in the past 24 hours. Overall, the market is cautious, with traders avoiding aggressive decisions.
Traders reduce risk in futures markets
In the derivatives market, traders are reducing exposure and reducing leverage. Total open interest in Bitcoin futures has fallen to around $24.9 billion, indicating traders are exiting positions and bracing for further volatility. Over $600 million in long positions were liquidated in just one day. This means that traders who were expecting the price to rise due to the fall in Bitcoin were forced to exit.
However, options markets are showing a more hopeful tone. More traders are buying call options than put options, meaning some believe a rebound is near. The zone around $100,000 is becoming a strong support area as many trades are concentrated around that price. If Bitcoin can sustain above this level, it could help stabilize the market in the short term.
Altcoins fall, but AI tokens stand out
Altcoins continue to be under more selling pressure than Bitcoin. XRP fell nearly 5%, and Ethereum fell about 3.5%. The altcoin seasonal index is currently down to 22/100, indicating very low demand for altcoins and weak confidence among traders.
Still, AI-related tokens are outperforming other markets. Fetch AI (FET) soared over 23%, while NEAR rose around 22%, supported by strong trading activity on exchanges such as Binance and KuCoin. Even though most tokens are falling, investors seem to be moving money into AI projects.
Bitcoin outlook
Bitcoin is hovering around $99,984, about 20% below its recent highs, but the long-term trend remains healthy. With 19.94 million BTC already in circulation out of a fixed supply of 21 million, Bitcoin’s scarcity continues to be a major value driver. Although short-term indicators are showing weakness and momentum looks bearish, technical indicators such as the RSI show that Bitcoin is approaching the oversold zone, suggesting a possible recovery. Long-term averages remain showing strength, meaning if Bitcoin can sustain the $100,000 support level, the broader bullish outlook remains intact.
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FAQ
Traders are reducing leverage, with $600 million in long positions liquidated, reducing total open interest to $24.9 billion, a sign of caution going forward.
Yes, altcoins like XRP and Ethereum have fallen more than Bitcoin, and low demand is reflected in the Altcoin Season Index of 22/100.
AI-related tokens such as Fetch AI (FET) and NEAR have fared well, rising more than 20% on strong trading activity and investor interest.
The RSI indicates an oversold situation, with Bitcoin holding support near $100,000. Although short-term momentum is weak, long-term trends remain bullish if support holds.
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