Bitcoin and Ethereum Deepen Losses: Here’s Why, Latest Data, and Expert Opinions
The cryptocurrency market faced significant declines, with Bitcoin's price dropping below $100,000 for the first time since June 2025 to $98,944, losing over 7% in 24 hours. Ethereum saw a sharper drop, falling nearly 14% to $3,089, its lowest level in four months. Analysts attribute the decline to the US Senate's rejection of the interim budget bill, prolonging the federal government shutdown and causing liquidity concerns and economic uncertainty. This has led investors to move away from risky assets, intensifying the selling pressure on cryptocurrencies. U.S. stock indices, closely correlated with Bitcoin, also experienced losses. The average cost basis for Bitcoin ETFs is 11% below the current price, posing key support challenges. While Bitcoin has historically rebounded from significant drops, current macroeconomic pressures and declining investor sentiment signal a tough period ahead for the market.
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Crypto Market Faces Sharp Weekly Decline
The cryptocurrency market started the week with sharp sales. The Bitcoin price fell below $100,000 for the first time since June 23, 2025, plummeting to as low as $98,944 during the day. This indicates that BTC has lost over 7% of its value in the last 24 hours.
Ethereum Experiences Steeper Losses
The decline was even deeper for Ethereum (ETH), with its price falling to $3,089, marking a daily drop of nearly 14%. This was one of the lowest levels for Ethereum in four months, further emphasizing the market's fragile state.
US Budget Impasse Triggers Market Collapse
Analysts attribute this significant decline to the US Senate's renewed rejection of the interim budget bill. The resulting federal government shutdown, which began on October 1st, has become the longest in US history, surpassing the 35-day record set in 2018–2019.
Liquidity concerns and economic uncertainty have driven investors away from risky assets, intensifying selling pressure, particularly in the cryptocurrency market.
Correlation Between Bitcoin and Stock Market Losses
US stock indices, with which Bitcoin has a close correlation, also experienced deep losses today. The average cost basis for spot Bitcoin ETFs traded in the U.S. is $89,613, according to K33 Research data. This number sits 11% below the current price and serves as a key technical support level for the cryptocurrency.
Insights into Bitcoin Volatility and Market Trends
“This asset class is inherently extremely volatile. Whether the current decline is a 'step back' or the beginning of a new downward wave remains to be seen,” remarked James Seyffart, a Bloomberg Intelligence analyst.
Historically, Bitcoin has rebounded from drops exceeding 50% multiple times. However, current macroeconomic pressures and deteriorating investor sentiment indicate that the crypto market is entering a challenging period.