Bitcoin tumbles at $104,000 as selling pressure mounts, government shutdown 'stalls' tailwinds

Core Insights - Bitcoin (BTC) has experienced a decline of over 3%, dropping below $104,000, which is more than 17% off its all-time high reached in early October due to investor concerns over a potential government shutdown and slowing economic growth [1][4] - Significant selling activity from "whales," or large holders of Bitcoin, has contributed to market weakness, with over 1 million Bitcoin sold by long-term holders since the end of June [2][3] Market Dynamics - The manufacturing sector has contracted for eight consecutive months, and a lack of momentum in the equity market is causing investor anxiety, compounded by Federal Reserve Chair Powell's ambiguous stance on a potential rate cut in December [4] - Concerns regarding tightening market liquidity due to the government shutdown are prevalent, as spending from the Treasury General Account is stalled, which could negatively impact risk assets [5] Future Outlook - Analysts suggest that an end to the government shutdown could serve as a positive catalyst for Bitcoin prices, potentially driving them higher as the year concludes [6] - Fundstrat has set a year-end price target for Bitcoin in the range of $150,000 to $200,000, despite acknowledging the volatility that may occur in the interim [7]