Bitcoin price is under pressure at a key level in USD, lacking upward momentum in the short term.

Bitcoin prices have recently been oscillating around the $90,000 mark, with a significant pullback from the earlier level of $92,000. According to the latest data, BTC is currently quoted at $87.96K, down 0.80% over the past 24 hours, and market participants’ opinions on the future trend are becoming increasingly divided.

Multiple Factors Suppress Bitcoin Price Upside

Regarding the reasons for Bitcoin’s stagnation, market views are divided. Some traders attribute it to market manipulation, believing that large funds may be suppressing prices at key levels. However, more analysts point out that concerns over the artificial intelligence industry’s prospects are intensifying, with investor sentiment shifting from chasing technological growth to cautious observation. This psychological shift has directly impacted the attractiveness of high-risk assets, including Bitcoin.

Federal Reserve Policies and Liquidity Tightening Double Down

The Federal Reserve has been steadily reducing its balance sheet for most of 2025, directly weakening liquidity supply across the financial markets. This monetary policy stance diverges from market expectations—traders generally anticipated a shift toward a more dovish policy tone from the Fed, but actual actions have been contrary to expectations, damaging market confidence. More worryingly, even if the Fed initiates a rate cut cycle, traders’ expectations for the easing space are being revised downward, with uncertainty about whether the Fed can lower the policy rate below 3.5% in 2026.

Risk Aversion Sentiment Intensifies and Is Difficult to Reverse

As economic outlook uncertainties increase, investors’ risk-averse sentiment continues to ferment, and demand for traditional hedging assets remains strong. As a non-traditional asset, Bitcoin appears relatively dull in this market environment and is currently unable to serve as a safe haven in the short term. The lack of new liquidity injections and cautious trader attitudes have made Bitcoin price pressure a market norm, and the market awaits clear risk mitigation signals to potentially reverse the downward trend.