Analysis suggests that with BTC hovering around $90,000, it's unlikely to offer any short-term hedging effect, possibly due to the Federal Reserve's balance sheet reduction draining market liquidity.

According to a report by Cointelegraph, Bitcoin failed to hold the $92,000 mark over the past month and is currently hovering around $90,000. Some traders believe this is due to market manipulation, while others attribute the price decline to increased market concerns about the artificial intelligence industry. Another major factor limiting Bitcoin's price increases is the Federal Reserve's balance sheet reduction for most of 2025. This move has drained liquidity from financial markets. Although there are clear signs that the Fed is shifting towards a more accommodative monetary policy, traders are uncertain whether the Fed can lower interest rates below 3.5% in 2026. As investor risk aversion intensifies, Bitcoin is unlikely to serve as a hedge in the short term.