Bitcoin price poised to go below $100,000 as Fed seen to print money ‘earlier than expected’

Core Viewpoint - Bitcoin is currently facing significant downward pressure, recently trading at $99,000, with potential for further declines before any recovery occurs [1][3][7] Group 1: Market Conditions - The cryptocurrency market is experiencing a selloff due to a combination of adverse conditions, including a broader risk-off sentiment in financial markets and a recent crash on October 10 [3][4] - The S&P 500 index has also seen a pullback, indicating a general decline in risk assets, with technology stocks particularly affected [4] Group 2: Liquidity Environment - A tighter macro liquidity environment is contributing to the current market conditions, with the Federal Reserve's balance sheet continuing to shrink despite plans to end quantitative tightening by December [4] - Interbank liquidity stress is becoming evident in repo markets, suggesting that the Federal Reserve may need to intervene sooner than anticipated to provide additional liquidity [5][6] Group 3: Future Outlook - Analysts predict that Bitcoin may experience further declines, with expectations of sub-$100,000 prices before any potential recovery [7] - The Federal Reserve's hawkish stance has contributed to rising risk-off sentiment, further complicating the market outlook [7]