Crypto & Equities Slump: Analysts Eye Key Support Zones as Bitcoin Dips

Market Context

Digital assets and equities both took hits recently, as risk appetite waned and macro-factors turned more cautious. Reasons include rising U.S. dollar strength, tighter capital flows, and uncertainty around policy / liquidity conditions. Crypto is feeling the ripple effect of broader risk-off pressures. 

Bitcoin’s fall comes after a strong rally earlier this year, and the pullback is raising questions about how much headroom remains before stronger support holds—or whether volatility could deepen.

Technical Details with Attribution

• According to Decrypt, Bitcoin fell about 21% from its October peak, dipping to around $99,000 before showing minor recovery. 
• Market-wide liquidations exceeded $2 billion amid the downturn. 
• Analysts cited $98,000 as a near-term support level, with a more conservative possible low of $85,000 if pressures continue. 
• Key drivers include strength in the U.S. dollar, squeezed liquidity in short-term funding markets (e.g. repo / Treasury flows), and uncertainty linked to ongoing government or policy gridlock. 

Analyst Perspectives 

Some market watchers believe the retreat is a temporary pullback within a longer-term bull trend—but caution that without renewed capital inflows (e.g. from ETFs, institutions) or monetary easing, further downside remains possible.

Others warn that while on-chain metrics (hash rates, stablecoin reserves) remain healthy, sentiment-driven swings can take markets lower than technical targets until clarity returns.

Global Impact Note

Should Bitcoin test support near $85K or fail to stabilize, ripples may spread across major crypto-exposed equities (miners, exchanges) and influence capital flow into other crypto assets (e.g. Ether, altcoins). Institutional portfolios in Europe, Asia, and the U.S. could recalibrate risk allocations amid higher volatility thresholds.