Bitcoin Price Analysis: BTC Back At $90,000 As Crypto Stocks Tumble
Bitcoin (BTC) briefly slipped below $90,000 amid AI-related concerns, dragging the equity and crypto markets lower. The flagship cryptocurrency fell to a low of $89,500 before reclaiming $90,000 and ending Friday at $90,278.
BTC has been unable to reclaim the $94,000 resistance level despite growing market optimism, with one analysis blaming the recent pullback on “manipulative market forces.”
House Financial Services Committee Urges SEC To Amend 401(k) Rules
The House Financial Committee has written to the United States Securities and Exchange Commission (SEC) to amend existing rules preventing Bitcoin and other digital assets from being used in 401(k) plans. The move will allow crypto to access the US retirement system, unlocking a new source of capital. The letter references President Trump’s August 7 executive order, mandating the SEC and the Department of Labor to review and remove rules preventing alternative investments from being included in retirement plans.
However, critics of the idea pushed back, citing volatility and fiduciary risks. The American Association of Teachers has opposed the measure as well, highlighting the potential for fraud and risks of speculative assets for retirement security. Additionally, financial analysts have highlighted the lack of long-term data and regulatory clarity.
AI Bubble Fears Drag Markets Lower
AI stocks came under renewed pressure on Friday, dragging tech equities and Bitcoin (BTC) lower. The Nasdaq Index fell 1%, with some stocks, including Oracle and Broadcom, registering double-digit falls as investors were concerned that the hype around artificial intelligence may be fizzling out. BTC, which traded above $92,000, fell to $89,500 as it continued trading below key resistance levels.
Bitcoin miners that lean into AI for diversification also saw their stock prices fall. Hut8 (HUT) fell by over 5%, while Iren (RIEN) and Riot (RIOT) dropped 4%. Crypto stocks also declined, with Robinhood (HOOD) and Strategy (MSTR) falling almost 2%. Coinbase (COIN) registered a marginal decrease, while Circle (CRCL) fell by over 5%.
Markets have been jittery after Fed Chair Jerome Powell hinted at a pause in rate cuts in January. Market experts and investors expect two rate cuts in 2026 instead of the anticipated three.
Brazilian Bank Advises Bitcoin (BTC) Allocation
Itaú Asset Management, the investment arm of Brazil’s largest private bank, Itaú Unibanco, has advised investors to allocate between 1% and 3% of their portfolio to Bitcoin (BTC) in 2026. According to Itaú Asset Management’s Renato Eid, ongoing geopolitical tensions, shifting monetary policy, and currency risks warrant adding Bitcoin to investment portfolios. The research note stated that Bitcoin was different from traditional stocks, fixed income, and domestic markets, and carried its own return potential, adding that it could also be used as a hedge against currency.
By allocating around 1% to 3% in their investment portfolio, investors will in fact be taking advantage of an asset that generates diversification.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) failed to gather momentum and test the $94,000 resistance level as market sentiment turned bearish. The flagship cryptocurrency fell to an intraday low of $89,257 on Thursday before reclaiming $90,000 and settling at $92,542. However, selling pressure returned on Friday as the price fell 2.45% to $90,278. BTC is marginally up during the ongoing session, trading around $90,554.
Crypto analyst and entrepreneur Michael van de Poppe noted,
Bitcoin is doing the choppy dance. Illiquid books, and therefore fast moves up and down for the position on </span></i><a href="https://coinstats.app/coins/bitcoin/"><b><i>$BTC</i></b></a><i><span style="font-weight: 400;">.
The analyst believes that despite choppy price action, the flagship cryptocurrency is primed for a breakout in the coming weeks.
I think that we’re still in for a new upwards breakout in the coming days/weeks.
Attempts to push higher have failed to break above key resistance levels, with $94,000 proving to be particularly difficult. Van de Poppe argued that higher lows indicate BTC is forming an uptrend, lowering the chances of a deeper pullback.
Higher lows indicate a higher structure and therefore an uptrend is being established. Price clearly doesn’t break down anymore, and my general thesis is that the recent, heavy correction was highly manipulative and not organic.
BTC started the month in the red, dropping to a low of $83,800 before settling at $86,282. The price recovered on Tuesday, rising nearly 6% to reclaim $90,000 and settle at $91,308. Buyers retained control on Wednesday as BTC rose 2.35% to $93,453. However, it lost momentum on Thursday, dropping 1.46% to $92,093. Selling pressure intensified on Friday as BTC fell almost 3%, slipping below $90,000 to $89,345. BTC started the weekend with a marginal decline on Saturday. Volatility returned on Sunday as BTC reached an intraday high of $91,779, dropped to an intraday low of $87,733, before reclaiming $90,000 and moving to $90,402.
Source: TradingView
Buyers retained control on Monday as the price reached an intraday high of $92,291 before settling at $90,653. Bullish sentiment intensified on Tuesday as BTC rose 2.25% to $92,690. The price reached an intraday high of $94,500 on Wednesday but lost momentum, settling at $92,035. The flagship cryptocurrency plunged to a low of $89,257 on Thursday with volatility and selling pressure persisting. However, it rebounded from this level to reclaim $92,000 and settle at $92,542. Selling pressure returned on Friday as BTC fell 2.45% to $90,278. The flagship cryptocurrency is marginally up during the ongoing session, trading around $90,448.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.