Key takeaways:Bitcoin plunged to $91,800, its lowest level in six months, now down 28% from its October all-time high.Strong U.S. economic data further reduced the odds of a December Fed rate cut, pressuring risk assets.Bitfinex analysts say short-term holder capitulation suggests a local bottom may be forming soon.Bitcoin dropped to $91,800 on Monday, extending a multi-week slide and deepening losses across the digital asset market as macro uncertainty and persistent outflows from crypto funds weighed heavily on sentiment.BTC recovered slightly from an overnight low but resumed its decline during U.S. trading hours, falling 3% over the past 24 hours and nearly 14% in the past week. With the latest drop, Bitcoin has fully erased its 2025 gains and is now down 28% from its all-time high reached in late October.Ether (ETH) remained under pressure as well, hovering just above $3,000, down 2% on the day and 15% for the week.AI-aligned Bitcoin miners show resilienceDespite the broader market downturn, several Bitcoin miners with high-performance computing (HPC) and AI exposure saw rare strength:Hive Digital (HIVE) surged 10% after announcing an AI cloud partnership with Dell Technologies.IREN (IREN) and Hut 8 (HUT) also posted modest gains after weeks of heavy losses.This divergence highlights growing investor interest in miners pivoting toward AI infrastructure — a sector that continues to outperform even as crypto weakens.Fed rate cut expectations fade after surprise economic strengthWith the 43-day U.S. government shutdown disrupting official data releases, secondary indicators have become more influential.On Monday, the New York Fed’s Empire State Manufacturing Survey unexpectedly jumped to 18.7, far above expectations.The data sharply reduced expectations for a Federal Reserve rate cut in December:Polymarket odds: 55% chance rates remain unchangedCME FedWatch Tool: ~60% probability of no cutLingering inflation concerns and stronger-than-expected economic output typically reduce liquidity, weighing on Bitcoin and risk assets.CME futures gap still pulling BTC lowerBitcoin’s decline may also be influenced by technical market structure.As noted by CoinDesk Senior Analyst James Van Straten, Bitcoin futures on the Chicago Mercantile Exchange (CME) opened at $93,840 this week, leaving an unfilled gap near $91,970 — a level BTC frequently revisits.This gap now sits just above current prices and continues to serve as a short-term gravitational pull for traders.Analysts: Short-term holder capitulation may signal a local bottomDespite the deepening correction, several analysts believe Bitcoin may be nearing a local bottom.According to Bitfinex researchers, realized losses are stabilizing, historically one of the key markers before a trend reversal.Across previous cycles, Bitcoin only formed durable bottoms after short-term holders capitulated into losses.“The market appears to be approaching that threshold once again,” the analysts said, noting that the current downturn could soon exhaust remaining sell-side pressure.They emphasized that this drawdown is now:The third-largest correction since 2023, andThe second-largest since the launch of U.S. spot Bitcoin ETFs in 2025Both metrics increase the likelihood of a bottom forming in the near term, barring further macro shocks.