Bitcoin recorded its steepest weekly decline in eight months, with prices plummeting as uncertainty surrounding U.S. government funding and economic data spooked investors.
The cryptocurrency touched a local low of approximately $94,257 on Friday, a level not seen since May. This capped a nearly 9% loss for the week, marking Bitcoin’s worst weekly performance since March.
Analysts attributed the sharp fall primarily to a lack of clarity on critical U.S. economic indicators and the direction of monetary policy. This information void stemmed from the country’s longest government shutdown, which began October 1 and suspended the release of key inflation and employment data.
“The market pullback is the result of an information vacuum and policy uncertainty,” Bitfinex analysts told CoinDesk. They added that missing economic data to guide the market and the Federal Reserve kept investors in a holding pattern ahead of a December interest rate decision.
With Bitcoin dipping below the psychological threshold of $100,000, investor appetite for risk assets, including spot Bitcoin exchange-traded funds (ETFs), waned. U.S. spot Bitcoin ETFs registered outflows of $870 million on Thursday, marking their second-largest daily negative flow.
These outflows pushed the total for November to nearly $2 billion. Bitcoin’s market capitalization no longer stands at $2 trillion, and its current price is approximately 25% below its all-time high of $126,000, reached last month.
The U.S. government shutdown, which lasted 43 days, ended after President Donald Trump signed a temporary funding bill on Wednesday. The measure provides funds until January 30, 2026, allowing more time for negotiations on broader financial plans.
However, the temporary resolution failed to reassure the market. “The temporary funding bill doesn’t resolve the uncertainty—it just postpones the issue,” Bitfinex analysts noted.
The end of the shutdown also failed to provide a sustained boost to Bitcoin. The cryptocurrency fell below $100,000 after a brief recovery above $105,000 earlier in the week.
Some analysts project further declines, with a potential floor at $84,000. John Glover, Chief Investment Officer at crypto lending firm Ledn, warned that technical indicators “suggest room for further declines.”
Glover explained to CoinDesk that a break below the 23.6% Fibonacci retracement, just under $100,000, “opens the way to key support around $84,000.” He anticipates a volatile bear market, potentially extending the full correction until mid-2026.
While acknowledging short-term weakness, other experts maintain a longer-term optimistic outlook. JPMorgan analysts, who had previously set a floor at $94,000 mid-week, reiterated an expectation for Bitcoin to reach a new peak of around $170,000 within the next six to 12 months.
As of early Friday evening Eastern Time, Bitcoin was trading at approximately $95,000, a 4.6% decrease over the previous 24 hours. Its year-to-date gain stood at a modest 1.59%.