Bitcoin News: Bitcoin Falls Below $105K as Tech Stock Euphoria Peaks and Oracle CDS Surges
Key Takeaways:Bitcoin dropped below $105,000, breaching its final support before the $100K zone.Analysts now eye $94,000–$85,000 as potential downside targets if the slide deepens.The move coincides with overexuberance in tech stocks and rising Oracle CDS tied to AI spending risks.Major altcoins, including Ether, Solana, and XRP, also hit multi-month lows.Bitcoin Breaks Key $105K SupportBitcoin (BTC) extended its decline below $105,000 in Asian trading hours on Monday, breaking through its last major support level before the psychological $100K zone, according to CoinDesk data.The breakdown signals renewed selling pressure across the crypto market as sentiment weakens alongside global risk assets. Ether (ETH) fell to its lowest since August, Solana (SOL) slipped to $157, and XRP dropped to a three-week low.Technical indicators confirm a bearish crossover in Ethereum’s moving averages, suggesting further downside momentum across major tokens.Analysts Warn of $94K–$85K Retest Zone“Bitcoin’s breakdown shifts focus to the $100,000–$101,000 area,” said Markus Thielen, founder of 10x Research, in a note to clients.A sustained break below that range could expose $94,000, or even a full retracement toward $85,000 — a level Thielen describes as the “maximum pain zone” supported by strong on-chain data.“While such a move would be extreme, downside risk remains contained as long as Bitcoin holds above its prevailing downtrend line,” he added.Macro Pressures Mount: Fed and Dollar StrengthenThe drop below $105K follows dwindling odds of aggressive Fed rate cuts and a resurgent U.S. dollar index (DXY), which has pressured both equities and crypto.Federal Reserve Chair Jerome Powell recently stated that another rate cut in December is not “a foregone conclusion,” cooling investor optimism and triggering renewed risk aversion across global markets.‘Magnificent 7’ Skew Flip Signals Market EuphoriaIn equities, analysts are warning of excessive bullish positioning in the “Magnificent 7” tech stocks — Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, and Tesla — a pattern that often precedes corrections.According to Goldman Sachs data shared by Neil Sethi, the put-call skew inverted for the first time since December 2024, indicating calls now trade richer than puts — a rare signal of extreme optimism.“Such low skew readings have historically aligned with short-term market reversals,” Sethi noted on X.Oracle CDS Surge Reflects AI Spending AnxietyMeanwhile, the credit default swap (CDS) linked to Oracle Corp. — a measure of the cost of insuring its debt — has surged to levels last seen during major market stress periods.The spike followed Oracle’s third-quarter report, which revealed massive AI infrastructure spending, raising investor concerns over unsustainable tech investment cycles.Analysts say this growing anxiety mirrors the late-stage exuberance seen in prior bull markets fueled by disruptive technology themes — from dot-com stocks to blockchain hype cycles.Caution Dominates as Crypto Correlates with Risk AssetsThe convergence of weaker technicals, hawkish macro signals, and AI-linked investor anxiety has pushed traders into a defensive stance.“Bulls might be better off being cautious rather than overly exuberant,” Thielen said, noting that volatility could persist as Bitcoin approaches its final technical supports before $100K.
