Bitcoin Sinks to May Low Under $96,000. When Buy the Dip?Because sometimes the dip just keeps on dipping.
Bitcoin BITSTAMP:BTCUSD can’t seem to catch a break. The flagship crypto slid below $96,000 on Friday, a level last seen in May, and traders aren’t exactly rushing to buy the dip.
The decline caps a tough few weeks for the OG coin, now lower by about 24% from its record high of $126,000 .
The selloff hasn’t been contained to just Bitcoin. The whole crypto market has been slammed.
Ethereum BITSTAMP:ETHUSD stumbled into the low $3,100s, while Solana COINBASE:SOLUSD fell to the mid-$140s. The entire digital asset space looks winded, and this time, the usual quick rebounders and sharpshooters are sitting on their hands.
What’s going on? In short — traders are nervous, the data floodgates are about to open, and the Federal Reserve isn’t giving anyone the all-clear just yet.
🧨 Buy Dip or Wait for Data?
The end of the US government shutdown should’ve been good news — until investors remembered what comes next.
All the pent-up economic reports that couldn’t be released during the freeze are about to hit the tape: jobs data, inflation numbers, and other key reads that could shape the Fed’s next move.
The bad news: December rate cut isn’t guaranteed. Markets had been leaning heavily on that expectation to justify the monthslong risk-on rally. Now, with the data torrents about to test that narrative, traders are hedging their bets — and Bitcoin’s getting caught in the crossfire.
If the upcoming reports show the economy is still running hot, the Fed might delay cuts. And higher-for-longer rates are basically kryptonite for speculative assets.
💀 Liquidations and Leverage: A Familiar Story
Bitcoin’s latest slump wasn’t just about macro nerves — it was also a good old-fashioned liquidation cascade.
As prices dipped under key technical levels, margin traders got squeezed out in a hurry. According to data from liquidation trackers, over $220 million in crypto positions were wiped out in just one hour. In the past 24 hours? North of $600 million gone.
In previous dips, you’d see traders rushing to scoop up discounted coins, confident that the bounce would follow. The hesitation this time speaks volumes: sentiment’s shifting, and traders are more cautious after months of euphoric rallies in both AI stocks and crypto.
🌡️ The Contagion Spreads
Crypto weakness isn’t isolated anymore — it’s part of a bigger story. Risk assets everywhere are under pressure. The AI trade is cooling, tech stocks are wobbling , and volatility is creeping back into markets that had gone eerily calm.
In short, when traders start treating crypto like a growth stock proxy, Bitcoin stops being a hedge and starts acting like the Nasdaq on leverage.
🪙 So… When to Buy the Dip?
That’s the million-satoshi question. Historically, deep Bitcoin drawdowns during otherwise healthy macro backdrops have rewarded patience. But this time, the setup’s trickier. The next few weeks should bring a barrage of data that could redefine everything from rate expectations to risk appetite.
What can you do now? Watch the data, respect the trend, and don’t fight momentum.
Notice how the long-term upside swing on the daily is still there. But as they say, past performance isn't an indication of future results.
The Fed’s next move, coming early December, will likely decide if this dip becomes a real buying opportunity.
Off to you : Are you looking to buy the dip or you’re waiting for the dip of the dip? Share your strategy in the comments!
