Bitcoin is showing signs of weakness again as new U.S. economic data reduces expectations for interest rate cuts in 2026. BTC is still trading in a tight range, but analysts warn that the downside risk is increasing as markets adjust to a stronger-than-expected economy and continued ETF outflows.
At the time of the update, Bitcoin was trading near $89,400, slightly above this week’s low of $87,200.
Strong U.S. GDP Report Shakes Rate Cut Hopes
A fresh report from the U.S. Bureau of Economic Analysis (BEA) showed the economy grew 4.4% in Q3, beating the previous estimate of 4.3%. The result also came in stronger than Q2 growth of 3.8%.
This stronger GDP performance is important because it reduces the urgency for the Federal Reserve to cut rates. Many investors believe risk assets like Bitcoin perform best when the Fed shifts toward easier monetary policy.
Market expectations shifted quickly after the data:
- Polymarket odds of three Fed cuts this year reportedly dropped by 11% to 27%
- Analysts now expect Q4 growth could rise above 5%, which may keep the Fed cautious
Bitcoin ETFs See Heavy Outflows Again
Bitcoin is also facing pressure from selling in spot Bitcoin ETFs. Data from SoSoValue shows:
- $708 million in ETF outflows on Wednesday
- Up from $408 million the previous day
- More than $1.5 billion has left Bitcoin ETFs in the last three days
ETF outflows often signal reduced institutional demand in the short term, which can weaken price support during market uncertainty.
Investors May Be Rotating Into Gold
Another major reason crypto may be slipping is rising interest in traditional safe-haven assets.
Gold prices have jumped to record highs, and Goldman Sachs reportedly raised its gold target to $5,400, citing growing demand from central banks and corporations.
This suggests some investors are shifting money away from high-risk assets and into safer stores of value—especially during global uncertainty.
Bitcoin Price Prediction: Key Technical Levels to Watch
From a technical perspective, Bitcoin has pulled back sharply after hitting its year-to-date high near $97,790, falling to around $89,300.
Key bearish signals mentioned by analysts include:
- BTC breaking below the ascending triangle support
- Price staying under the 50-day moving average
- RSI falling below 50, showing weakening momentum
Important Support Zone
Next key support: $80,485
This level matches Bitcoin’s low from November and is now a major downside target if selling continues.
Final Thoughts
Bitcoin remains vulnerable as strong U.S. GDP data lowers the chances of rate cuts and ETF outflows continue rising. Unless BTC can reclaim stronger resistance zones, the market may remain under pressure, with $80K becoming a key level traders are watching closely.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
STRC Current Value Reveals MSTR Risk: Bitcoin Accumulation Commitment May Fall Short
Strategy's dividend preferred stock Stretch (STRC) may be overvalued due to its high annualized dividend yield of 11.5% and significantly increased future payment obligations. While it may improve the balance sheet in the short term, if Bitcoin's appreciation fails to exceed the high dividend yield, common shareholders' returns will be limited, and the market remains cautious about STRC's long-term sustainability.
GateNews1m ago
Whale 1EnPnm Withdraws 460 BTC Worth $32.41M from CEX After 3-Month Break
Gate News bot message, Whale 1EnPnm withdrew 460 BTC valued at $32.41 million from a centralized exchange after three months of inactivity. The withdrawal marks the whale's return to on-chain activity following an extended dormant period.
GateNews25m ago
Why Did the Crypto Market Decline Today? Bitcoin's Key Support at Critical Level, WLD Drops Over 10%
The cryptocurrency market has come under pressure recently, with total market capitalization retreating to 2.4 trillion dollars, while Bitcoin price hovers around 70,600 dollars. Market sentiment remains cautious, particularly with Worldcoin declining over 10%. In the short term, key support levels will influence market movements. If support breaks down or declines further to 2.32 trillion dollars, conversely, a strong rebound or recovery could occur if resistance is overcome.
GateNews26m ago
Oil Price Shock Coupled with War Risk, Bitcoin Key Support in Critical Condition: 65K May Be Next Target
Middle East tensions escalating and surging energy prices have impacted global markets, with Bitcoin experiencing significant price volatility and briefly breaking below $69,000. Federal Reserve policy has intensified market pressure, with analysts believing that rising energy prices will constrain asset performance, particularly Bitcoin. Currently, Bitcoin's trajectory depends on the macroeconomic environment, with $69,000 serving as a key short-term support level.
GateNews28m ago
