Bitcoin has experienced a significant downturn, dropping 6.4% to $83,383 on Thursday, marking its lowest level since late November. The sell-off was triggered by a massive $1.137 billion in net outflows from U.S. spot Bitcoin ETFs over five consecutive days, sparking a panic spiral in the market. The leading cryptocurrency has fallen nearly 5% over the past week and now stands 33% below its all-time high.
The Federal Reserve's decision on Wednesday to leave interest rates unchanged failed to provide any relief, contributing to the negative sentiment. Technical indicators have turned sharply bearish: the Relative Strength Index (RSI) hit 35 (deep oversold), a MACD bearish crossover was confirmed, and the price sits 20% below the critical 200-day Exponential Moving Average (EMA). Analysts are now eyeing $74,000 as a potential next target if support between $79,000 and $80,000 breaks.
Simultaneously, market sentiment for Solana has undergone a dramatic reversal. Predictors on the Myriad prediction market have flipped from overwhelmingly bullish to bearish in just two weeks. While predictors gave SOL a 91% chance of pumping to $150 two weeks ago, they now assign a 57% probability that it will dump to $100 first—a 41% sentiment shift. SOL was recently trading at $118, nearly 60% off its all-time high.
The broader market anxiety is compounded by political uncertainty surrounding the Federal Reserve. President Donald Trump is set to name a new Fed Chair next week to replace Jerome Powell, whose term ends in May. The shortlist is led by BlackRock's Rick Rieder, with betting pools giving him 42-43% odds, followed by Kevin Hassett, Christopher Waller, and Kevin Warsh. Trump has criticized current rates as "unacceptably high" and called for 2-3 point cuts, raising concerns about the central bank's independence if a rate-cutting zealot is appointed.
Despite the price decline, Michael Saylor's firm, MicroStrategy, continues its aggressive Bitcoin accumulation strategy, though recent purchases have failed to stem the selling pressure. In a contrasting data point, Solana ETFs showed resilience, adding $6.7 million in net inflows on Wednesday—their best daily mark in about two weeks.
