Market concerns: Bitcoin approaches the worst year since 2018, when the dollar exchange rate affected crypto

Crypto analysts are paying particular attention to the fact that the current situation with Bitcoin resembles the most challenging periods of the past. According to the latest data, the difference between the current price of ($90.69K) and previous local highs is about 30%, which is comparable to the situation in 2018 when the dollar exchange rate and macroeconomic factors significantly influenced cryptocurrency dynamics.

Drop Statistics and Comparison with Historical Data

According to CoinGlass analysts, Bitcoin fell more than 22% in the fourth quarter. Such a result makes this period one of the weakest year-end finishes outside of major bear markets. The annual trend shows a decline of 4.20%, indicating the asset’s instability even in the long-term perspective.

The chief expert of the FxPro analytical platform, Alex Kupcikevich, stated: “The crypto market is trying to recover, but this does not yet constitute a true recovery.” His comment reflects skepticism about short-term signals that can be misleading. The asset is trading below the beginning-of-year level, confirming the market’s difficult situation.

Capitalization and Sentiment Indicators

The total market capitalization of cryptocurrencies reached $1.81 trillion (according to Bitcoin market value data), indicating some consolidation. However, analysts emphasize that such recoveries often reflect normal fatigue after a sharp decline rather than a return of investor confidence.

The fear and greed index settled at 24, signaling a partial move away from extreme pessimism. However, traders are still in a state of high caution and do not demonstrate the healthy risk appetite necessary for sustainable growth.

Market Risks and Vulnerability

The market remains highly vulnerable to sudden reversals, especially during the US trading session when fluctuations are most active. A similar picture was observed in 2018 when external macroeconomic factors and dollar rate fluctuations increased volatility in the crypto market.

Analysts warn that the current period could turn into one of the weakest years in Bitcoin’s recent history outside of classic bear markets unless there is a significant revaluation of assets.