[Analysis: Bitcoin Struggles to Break $90,000 Due to Fed's Balance Sheet Reduction Draining Market Liquidity] Odaily Planet Daily reports that Bitcoin has failed to hold the critical $92,000 price level over the past month and is currently hovering below $90,000. Some traders believe the recent decline in Bitcoin's price is due to market manipulation, while others attribute the drop to growing concerns about the artificial intelligence industry. However, analysis suggests that a key factor limiting Bitcoin's price growth is the Federal Reserve's reduction of its balance sheet throughout most of 2025, which has drained liquidity from financial markets. Despite clear signs that the Fed is shifting toward a more accommodative monetary policy, traders remain uncertain whether the Fed can lower interest rates below 3.5% by 2026. As investor risk aversion intensifies, Bitcoin is unlikely to serve as an effective hedge in the short term. (Bloomingbit)