Bitcoin Dips Below $95K, but Some Analysts Shrug Off Bear-Market Fears — WSJ
By Vicky Ge HuangRisk-off sentiment dominated crypto markets this week, but some analysts contend the market rout is a healthy correction.Bitcoin traded at $94,263 as of 4 p.m. ET on Friday, its lowest 4 p.m. level since April, according to Dow Jones Market Data.Analysts say broader market declines and more hawkish statements from Federal Reserve officials, which have lowered expectations for interest-rate cuts, are weighing on prices. Meanwhile, this pressure is compounded by concentrated selling activity from holders of crypto exchange-traded funds and shares in crypto-treasury companies.Some analysts remain unconcerned about a long-term slump, emphasizing that the market hasn't inflated into a true bubble. They point to the absence of the major speculative triggers that caused prior collapses, such as the initial coin offering mania in 2017 and 2018 or the undercollateralized crypto lending problems of 2021 and 2022."We're trying to be really paranoid to see if we're identifying those things, but I think in the absence of them, we don't expect a prolonged and deep bear market for bitcoin or for crypto generally," said Frank Downing, director of research focusing on cloud computing and crypto assets at ARK Investment Management.This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).