Bitcoin Drops Below $94K as Crypto Sell-Off and Economic Concerns Weigh on Markets

Bitcoin (BTC) slipped further on Monday, struggling to find support amid widespread losses across the crypto market and lingering uncertainty in traditional finance. A broader downturn in U.S. stocks added to bearish sentiment, limiting hopes of a recovery.

BTC fell to approximately $93,900 as U.S. markets closed, marking a 1.9% decline in the past 24 hours. Meanwhile, ether (ETH) tumbled 5.9%, and the CoinDesk 20 Index dropped 5.1%.

Wall Street’s attempted rebound also failed to gain traction. The Nasdaq slid another 1.2% on the day, while the S&P 500 lost 0.5%, extending last week’s sell-off.

Among major cryptos, solana (SOL) was hit the hardest, falling nearly 10% over the last day and erasing 41% of its value over the past month. The sharp decline follows concerns over upcoming token unlocks, increased network inflation from the recent SIMD-96 upgrade, and a cooling memecoin frenzy that had previously driven activity on the Solana network. At $151, SOL has now lost all gains made after the U.S. elections.

Quinn Thompson, founder of crypto hedge fund Lekker Capital, warned investors about Bitcoin’s near-term outlook.

“Many still feel complacent, but $95,000 may not look like a bad exit point in hindsight,” Thompson said, estimating an 80% chance that BTC won’t hit new highs in the next three months and a 51% chance it won’t in the next year.

Beyond crypto, macroeconomic risks continue to mount. Neil Dutta, head of economic research at Renaissance Macro Research, pointed to slowing wage growth, a worsening housing market, and cutbacks in state and local government spending as signals of potential economic trouble.

“The dominant risk right now is a passive tightening of financial conditions, which could lead to falling equity prices and deteriorating labor market conditions,” Dutta said.

While analysts remain divided on whether markets can recover in the near term, investors are keeping a close eye on economic indicators and Federal Reserve policy decisions for signs of direction.